What Assets Can Be Kept in Bankruptcy in BC
The biggest worry for people who want to file for bankruptcy is whether they will lose everything if they file for bankruptcy. In British Columbia, this is not the case as for the law here gives every victim a chance to have a new start. Experiencing bankruptcy of course means that even if all the assets are to be liquidated, one would still owe more than he/she can possibly reimburse. This is a problem that can happen to anyone, so it does not mean a bankrupt is a bad person, so anyone experiencing this, needs to be given another chance to start afresh.
After filing for bankruptcy in BC, the bankrupt is required to sign a statement that lists his or her assets and liabilities and eventually, they can hang on to a certain amount of assets. However, if the assets are below a certain amount or if they are of certain kind, the victim will not have to surrender them. These consist of;
€ Any RRSPs which are unlimited in value that were obtained more than a year ago. All things that were bought within the one last year will become payable.
€ Domestic items that have a value of $4000
€ Apart from Victoria and Greater Vancouver, homes in the rest of the province get equity up to a value of $9000. Greater Vancouver and Victoria are given equity of up to $12,000. The victim may need to repay to the full equity in their home, if the equity surpasses the exemption. This means if the house has $18,000 in equity, the bankrupt may be required to pay the full $15,000 and he/she may not get the benefit of the exemption. However, approaching a trustee for professional help will be a good idea, since bankruptcy laws may change
€ Necessary clothing and medical aids is unrestricted
€ Work tools that have a value of $10,000
€ If the person is behind on child support payments, the car exemption drops to $2000 from the normal $5000 value. Just like for the house, if the car's value go beyond the exempted amount, the victim is not permitted any exemption.
In this whole situation, it is important to hold a discussion with a trustee, for the reason that he/she helps the victim to understand what is lawfully exempted. In Bankruptcy in British Columbia, certain superannuation such as pension plans, life insurance policies, retirement savings plans and court awards for pain and suffering are also exempted.
Since one can keep some assets, it will be needed to turn other things over. These items comprise of (however, they are not limited to):
€ Investments
€ Any RRSP donations made within the one year period prior to the bankruptcy
€ Personal belongings such as collectables, recreational equipment, jewelry etc
€ Cash assets like term deposits, bonds, educational savings, GICs, stocks, savings are need be turned over to the trustee.
These among many other items of value are not excused and they are required to be turn over to the trustee. Selecting a professional who can take the victim through the entire process safely and lawfully is what will work best. It's best for one to use a professional whose aim is not to stand to financial gain based on the solution selected.
After filing for bankruptcy in BC, the bankrupt is required to sign a statement that lists his or her assets and liabilities and eventually, they can hang on to a certain amount of assets. However, if the assets are below a certain amount or if they are of certain kind, the victim will not have to surrender them. These consist of;
€ Any RRSPs which are unlimited in value that were obtained more than a year ago. All things that were bought within the one last year will become payable.
€ Domestic items that have a value of $4000
€ Apart from Victoria and Greater Vancouver, homes in the rest of the province get equity up to a value of $9000. Greater Vancouver and Victoria are given equity of up to $12,000. The victim may need to repay to the full equity in their home, if the equity surpasses the exemption. This means if the house has $18,000 in equity, the bankrupt may be required to pay the full $15,000 and he/she may not get the benefit of the exemption. However, approaching a trustee for professional help will be a good idea, since bankruptcy laws may change
€ Necessary clothing and medical aids is unrestricted
€ Work tools that have a value of $10,000
€ If the person is behind on child support payments, the car exemption drops to $2000 from the normal $5000 value. Just like for the house, if the car's value go beyond the exempted amount, the victim is not permitted any exemption.
In this whole situation, it is important to hold a discussion with a trustee, for the reason that he/she helps the victim to understand what is lawfully exempted. In Bankruptcy in British Columbia, certain superannuation such as pension plans, life insurance policies, retirement savings plans and court awards for pain and suffering are also exempted.
Since one can keep some assets, it will be needed to turn other things over. These items comprise of (however, they are not limited to):
€ Investments
€ Any RRSP donations made within the one year period prior to the bankruptcy
€ Personal belongings such as collectables, recreational equipment, jewelry etc
€ Cash assets like term deposits, bonds, educational savings, GICs, stocks, savings are need be turned over to the trustee.
These among many other items of value are not excused and they are required to be turn over to the trustee. Selecting a professional who can take the victim through the entire process safely and lawfully is what will work best. It's best for one to use a professional whose aim is not to stand to financial gain based on the solution selected.
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