What assets can you keep in a bankruptcy in Burlington?

There is often a fear of reaching out to a Licensed Insolvency Trustee to explore bankruptcy due to the misconception that you lose all your assets.  The Execution Act in Ontario allows you to retain your household furnishings, a vehicle up to a set value, and most RRSPs are exempt from seizure in bankruptcy.

The purpose of filing an assignment in bankruptcy is to provide you with relief from your debt and allow you to move forward with a fresh start.  To assist in your rehabilitation to a fresh financial future, the following assets are exempt in a bankruptcy and are retained by you:

The Execution Act of Ontario

• Household furniture up to a liquidation value of $14,180;
• One personal automobile up to a value of $7,117;
• Tools of the trade required to operate your business up to $14,405; and 
• Your home if the equity is less than $10,783.  If the equity is higher than the exemption, then the exemption is lost.

Additionally:

• Life insurance policies with a designated beneficiary of a spouse or child are exempt
• Registered Retirement Savings Plan and Registered Disability Savings Plan, other than contributions in the 12 months preceding your bankruptcy, are exempt

We refer you to  https://freshstartnow.ca/the-process/personal-bankruptcy/ on our website for further details on assets you can keep in a bankruptcy.  

The trustees at Taylor Leibow Inc. would be happy to set up a free consultation in Burlington to review your personal situation in detail and explore if a bankruptcy can provide you with relief from overwhelming debt.   Reach out to us today to discuss what assets you can retain while eliminating your debt.