bankruptcy insolvency act ontario
[mage lang="en|de|en" source="flickr"]bankruptcy insolvency act ontario[/mage]
While Ontario, and indeed everywhere in North America, people drive cars, and they worry that they lose their car if it for personal Declare bankruptcy. The rules are different in each province and state, so this article only for the law in Ontario, Canada. Talk with your advisor for the rules in Near you. In Ontario, if you go bankrupt, effective 22nd June 2006 you are allowed to keep a car worth of state, $ 5,650.
If you own, For example, a vehicle that had, you could pay an estimated value of $ 6,650 $ 1,000 into your bankruptcy estate and keep your vehicle. (This example assumes that there no liens on your vehicle when you money against the vehicle would be guilty, you would have to be paid to keep the lender to the vehicle).
If She wanted to pay $ 1,000 to keep the vehicle could get the money from your earnings after you file bankruptcy or you could borrow money from friends or Family (assuming they understood that you were broke). If you own a vehicle worth $ 9,650, and you could not afford to pay their fiduciary to maintain the required $ 4,650 a vehicle, the trustee would sell the vehicle. But after the executions Ontario Act, paragraph 3 (3):
If the exemption is sought for a motor vehicle that a sale worth more than the amount referred to in paragraph 6 of ยง 2 plus the cost of Sale, the vehicle is subject to seizure and sale under a writ of execution and the amount referred to in this paragraph shall apply to the debtor from the proceeds be paid from the sale.
Therefore, if you supply the vehicle and the trustee sold it entitles you to the first $ 5,650 of the proceeds are received, and you could use this money to buy another vehicle because going to paragraph 4 (4) of the executions law to say that:
The amount on a debtor entitled under subsection 3 (1), (2) or (3) shall be exempt from attachment or seizure at the instance of creditors.
Here's one final thought. If you do, a valuable car instead of going into bankruptcy and even lose him, is another option, the more the consumer Proposal file that you keep your car. Clearly this is a complicated area, so if you own a car and are considering the request for bankruptcy in Ontario, you should contact a trustee, and the arrangements for a free initial consultation before you make any decisions.
J. Douglas Hoyes is a chartered accountant, licensed trustee in bankruptcy, and co-founder of Hoyes, Michalos & Associates Inc., one of Ontario, Canada’s largest personal insolvency firms helping people understand bankruptcy, and all of their bankruptcy alternatives. For information about bankruptcy in Ontario visit http://www.hoyes.com, and see also more information about keeping a car in bankruptcy and more details on do I lose my car if I go bankrupt?
