As an increasing number of Canadians consider filing for bankruptcy, more and more people are searching for information regarding effective debt solutions.
Although bankruptcy is a common method of debt resolution, there are many misconceptions surrounding the process.
For example, many people assume that being declared bankrupt will prevent you from ever getting credit again.
With so many unanswered questions, it can be tricky for people to access the information they need in order to decide whether bankruptcy is right for them.
Fortunately, you can access tailored advice and information for a licensed insolvency trustee whenever you need to with Bankruptcy Canada.
Need Help Reviewing Your Financial Situation?
Contact a Licensed Trustee for a Free Debt Relief Evaluation
What happens to your assets during bankruptcy?
If you file for bankruptcy in Canada, your assets will be evaluated and declared to be exempt or non-exempt.
Assets that are exempt from the bankruptcy will not be seized and you will be able to keep them.
However, non-exempt assets can be seized and used to pay off some or all of your debts.
In reality, however, it’s rare for assets to be seized during a personal bankruptcy.
The rules regarding which assets are exempt and non-exempt vary in different jurisdictions but personal goods and household items are almost always exempt from bankruptcy.
Similarly, if you are up to date with your mortgage payments and your property is fully financed, it won’t be seized when you file personal bankruptcy.
Who decides if your assets are sold?
In Canada, a consumer proposal or bankruptcy must be dealt with by a licensed insolvency trustee (LIT).
They will assess your assets and determine whether they fall into the exempt or non-exempt category, based on the rules in your region.
However, there will be an opportunity for you to be involved in this process and discuss whether each asset should be seized or not.
Furthermore, your LIT will be on hand to answer any questions you may have or provide information regarding the rules of your bankruptcy.
What’s more, you don’t have to wait until you file for bankruptcy to access this information.
By talking to a licensed insolvency trustee now, you can find out whether your assets are likely to be deemed exempt or non-exempt before you decide whether or not you want to file for bankruptcy.
Speak to a LIT today
Although you can access plenty of information regarding personal bankruptcies, it’s always helpful to get advice that’s tailored to your unique situation.
At Bankruptcy Canada, we’re always on hand to assist with your debt problems.
To learn more about filing for personal bankruptcy or to discuss debt solutions in more detail, contact us now on (877) 879-4770.
We’re available 24 hours a day, 7 days a week and our dedicated team will be happy to answer any questions you may have.