Do I really lose everything if I declare bankruptcy? AN UPDATE

Effective December 14, 2005, the Province of Ontario has amended the limits on the amounts for certain assets which are exempt from seizure by a trustee in a bankruptcy. The increases basically allow for inflation as the amounts have not changed in the last 5 years. The new values are:

$5,650 worth of personal possessions (clothing, jewelry, sports equipment, etc.);

$5,650 worth of motor vehicles (cars, trucks etc.);

$11,300 worth of furnishings;

$11,300 worth of tools of the trade (equipment that you use to earn a living);

and certain types of life insurance.

In addition, when the new Bankruptcy rules come into effect during the summer of 2006, RRSPs will also be protected, but there are exceptions - for more details visit our website.

Every person has their own unique set of circumstances. If you find yourself in financial difficulty and would like advice on this subject matter call or email us so that we can meet with you to work out a plan. We can advise you as to how these rules will impact you; we can help you make the right decision.

Posted by Benny Mendlowitz, CA CIRP, Trustee @ 9:52 PM

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