Question: I own an older highway truck that is worth approx. $6000 it is free of leins does this item fit under tools of the trade.
Answer: Probably not, but it depends on exactly how you use the truck to earn income. The rules in this area are quite strict. We suggest the following approach:
First, obtain an appraisal on the truck to confirm it’s value. Get the appraisal in writing.
Then, meet with a licensed bankruptcy trustee to determine whether or not your truck qualifies as a tool of the trade under Ontario law (the laws are different in each province).
Finally, if your truck is not a tool of the trade, remember that in a bankruptcy in Ontario you are permitted to keep one motor vehicle worth up to $5,650. If your truck is worth $6,000, then you could pay the trustee the difference, $350, and keep the truck.