Question: If I have a car worth $800.00 and motorcycle worth $6,500.00 with no liens against them, will they try or can they take the motorcycle – or would I have to pay the difference of total value $7,300 – $5,650.00?
Please let me know
JK
Answer: If you file bankruptcy in Ontario, you are permitted to keep one motor vehicle worth up to $5,650. So yes, in your case you would be required to pay the difference, $7,300 – $5,650 or $1,650 if you wanted to keep both vehicles.
Question: Hi I have just about $52,000. in dept including 2 credit cards which I pay the min. I have a Line of credit of $20K and I have just been served from the Superior Courts to pay $22K.I am unemployed, no income, own a home, a car and having a difficult time paying my bills. I owe just under $6,000 on my car that is in my name and someone else. I have a house my husband pays the mortgage and land tax but I dear not mention bankruptcy against his house because that is all we have. We do have a 17 yr going to school. Can I declare bankruptcy without loosing my house and involving my husband? I am seeking deligently to find a job to offset the high dept I am in.
Answer: Whether or not you would lose your house if you declare bankruptcy in Ontario depends on a number of factors, including the value of the house, and the amount owing on your mortgage. More information is available in this article on What Happens to My House If I File Bankruptcy in Ontario?
Another option would be to file a consumer proposal, which in virtually all cases allows you to keep your house. However, if you are not working, a consumer proposal may not be an option, since you don’t have the income to make the payments.
We suggest that you arrange a no charge initial consultation with an Ontario bankruptcy trustee to review your options, and then decide which option makes the most sense for you and your family.
Question: How long after bankruptcy in Ontario can I own a car in my name?
Answer: It is actually possible to own a car while you are bankrupt in Ontario. Under Ontario law, you are permitted to own a car, with no loans against it, worth up to $5,650 when you go bankrupt. More information can be found in this article on cars and bankruptcy in Ontario.
Question: I am about to go bankrupt in Ontario. My question is, can my home be repossessed? I have about only 5% equity in it and child who is under 18 lives with me there and it is their primary residence.
Answer: If you go bankrupt, the trustee is required to take your assets and turn them in to cash. In your case, if there is only 5% equity in your house, it would not be possible for the trustee to sell your home and turn it into cash, because the trustee would be required to pay real estate commissions on the sale (probably 5%), plus legal fees and a penalty to break the mortgage, so in your case you would probably not lose your home.
We suggest you get a comparative market value assessment from a real estate agent, and a print out of the amount owing on the mortgage, and then consult an Ontario bankruptcy trustee for more information.
Question: Once bankruptcy is filed and the process has begun, what assets, if any, must be returned or relinquished?
Answer: If you go bankrupt in Ontario, you are permitted to keep one motor vehicle worth up to $5,650 (provided there are no liens or loans against it), as well as $5,650 worth of personal possessions, and $11,300 worth of furniture. Full information can be found in our article on what you lose if you file bankruptcy in Ontario.
Question: Hi. If I sell my house and move my money to an offshore account and then file for bankruptcy (all my debts are unsecured) will there be any repercussions?
also
Would I be able to sell my house to my brother and rent it from him. Then file for bankruptcy?
Answer: When you file for bankruptcy in Ontario, the trustee will ask you a number of questions, including “in the last five years did you sell any property?” If you sold your house and moved the money to an offshore account, you would be required to repay the money to the trustee before you would be discharged. Since all real estate transactions are easily traceable, lying about this is a criminal offense, and the maximum penalty is a jail sentence. So the answer to your question is yes, there would be serious repercussions.
You are able to sell your house to your brother and rent from him, but again, you must sell the house at fair market value, and the proceeds of the sale must be turned over to your trustee for the benefit of your creditors.
Question: Hi. Just bought a house with 100% mortgage 6 months ago, so essentially there is no equity in the house. I may be looking at bankruptcy as the only option at this point. Never missed a payment; all associated bills up to date. Will I have to sell/lose the house?
Answer: If you go bankrupt in Ontario, if you want to keep your house, you are required to pay to the trustee the equity in your house. In your case, if there is no equity, you would be able to keep your house.
Of course the other question to ask is whether or not it makes sense to keep the house. If there is no equity, and if the housing market in Ontario is declining, it may be better to surrender the house, find a place to rent, and then file bankruptcy.
Each person’s situation is unique, so to fully explore your options contact an Ontario bankruptcy trustee for a free initial consultation.
Question: i have a house paid fully if i sell the house or transfer it to another name then file bankruptcy after 3 or 4 months is it ok? is my house safe? can i do it?
Answer: No, if you own a house that is fully paid for with no mortgage, and you go bankrupt in Ontario, you will lose your house.
When you go bankrupt you must answer the following question: “Within the last 5 years, while you new you were insolvent (ie. in financial trouble), did you sell or transfer any assets?” If you were to sell your house, or transfer it, and then go bankrupt 3 or 4 months later, that fact would be disclosed to the trustee. (Even if you lied to the trustee and didn’t disclose the sale you would probably still get caught, since all house sales are recorded by computer and are easily searchable). If you did sell the house, your bankruptcy would probably not end until either you got the house back, or paid to the trustee the equivalent value of the house.
More information can be found in this article on Will I Lose My House If I Go Bankrupt?
Question: I have a healthy enough RRSP. I had repeatedly been told it was protected because it was “locked-in” and I could not touch it.
When we asses risk it is these pieces of information we consider. Is my RRSP available to creditors in my bankruptcy? It is locked in until 2015 (or longer). Once someone suggested I put it under an insurance but that seemed overkill.
Is it at risk if I go bankrupt?
Answer: Probably. If an RRSP is “locked-in” as a result of previous employment, where your pension is converted to an RRSP, it generally cannot be seized by the trustee. If there is a life insurance component it also is generally not seizable.
However, if your RRSP is invested in a locked in GIC that doesn’t mature until, say, 2015, the trustee would be able to seize it.
An added twist is that the rules regarding RRSPs will probably change later this year.
Given these complexities, you should gather all applicable RRSP documents and bring them in to your initial consultation with a trustee, who will be able to advise you on whether or not you will lose your RRSP in a bankruptcy.
Question: Are my exemptions specific to me or do my children have to include their personal clothing, computer etc. in with my assets?
And on the same topic. If my husband has assets and I have assets, is the bankruptcy only interested in my assets?
Both of our cars are in his name, does that mean one must be assigned to me?
My husband guaranteed a percentage of some of my loans. Our house is in his name and has little or no equity. Does my husband also have to declare personal bankruptcy? Can he make a proposal to pay his portion over time?
Answer: Only the bankrupt’s assets are considered in a bankruptcy. If a wife goes bankrupt, her husband’s and children’s assets are not considered (unless she transferred significant assets to them just prior to the bankruptcy).
If your husband has guaranteed some of your loans and you go bankrupt, he could either continue making payments on the loans, or go bankrupt or file a proposal. IF most of your debts are in common, a joint proposal may also be an option.
It’s impossible to cover all possible scenarios in a short answer on this web site, so we suggest that you consult a trustee for a free initial consultation.