If you are planning bankruptcy to get out of your existing debt situation, then it is good news.
This is because you have accepted that you are in a debt situation and are willing to take a positive step toward a solution.
An immediate action to take once you consider bankruptcy is to get in touch with a Licensed Insolvency Trustee or LIT.
A LIT is a Canadian government-authorized professional for imparting financial advice to debtors and handling a bankruptcy process.
MNP Limited Leduc, AB Licensed Insolvency Trustee
MNP Leduc bankruptcy firm has LITs with outstanding legal knowledge regarding bankruptcies. Our LITs can ensure that you get a fair deal in the process.
When considering bankruptcy, debtors are worried about the loss of assets.
It is untrue that you lose all your assets when you file for a bankruptcy.
The expert team of MNP Leduc bankruptcy firm addresses this question here:
Asset Exemption in Alberta
Exemption on assets is governed by both the Federal and provincial laws.
The bankruptcy process itself is governed by the Bankruptcy and Insolvency Act.
The assets mentioned therein are exempted from seizure during a bankruptcy.
The value of exemption depends on the provincial laws, in this case, the laws of Alberta.
Some general items that enjoy exemption during a bankruptcy sale include:
- Household furniture;
- Trade tools;
Under Alberta’s provincial law, the following properties are exempt:
- Food items for a period of 12 months;
- Clothing items up to a value of $4, 000;
- Trade tools, up to a value of $10, 000;
- Equity on your primary residential property, exempt up to $40, 000. If you are a co-owner, the value will be calculated according to your share;
- Farmland property up to a value of 160 acres provided you derive your primary income from such land;
- Farmland livestock, equipment and other items needed for farmland operations, can be retained for 12 months;
- Home furniture amounting to $4, 000;
- A motor vehicle with a value cap of $5, 000, meaning you can retain the vehicle if its assessed value is $5, 000 or less;
- Medical aids including dental aids with no cap on value;
- Pension, RRSP and RESP;
- Benefits such as social allowance, widow’s pension and handicap grants;
- Specific life insurance policies.
At MNP Leduc bankruptcy firm, we work on the belief that no matter how overwhelming your debt situation is, it can be redeemed.
Our fact-based advice on retaining exempted assets after a bankruptcy has played a key role in helping clients rebuild a financially-secure future.
Leading a life of dignity and owning a thriving financial future is possible even after a bankruptcy.
Let Leduc’s trusted bankruptcy firm help you discover the way.
Get in touch with us today.
Leduc AB T9E 6T5