What is an asset?

Many times when I meet with clients they say they have no assets when I ask if they have any. I usually realize they don't understand the question because they are wearing clothes and even though they may not be fancy, that is an asset.

The simple answer to my question is that an asset is anything you own. The more detailed answer is:
- your clothes and personal effects such as jewellery and glasses
- household furniture and effects including everything such as linens, china, cameras, pictures - not just the big items you automatically think of
- vehicles of any sort - yes, even that snowmobile that doesn't run and is sitting in your yard
- recreational items
- investments - this includes RSPs, life insurance policies, pensions, mutual funds
- houses and cottages or any type of land
- lawsuits.

As you can see, the list could go on indefinitely.

It is important that you disclose all your assets to the trustee, so if you are not sure mention the item. The trustee will be able to advise what will happen to the item. Will it be exempt from seizure by the trustee? Is it secured to a creditor or are you making payments to someone in order to keep the item (is it listed as security on a loan document)?

These are just a few of the questions that the trustee needs answered to each of your assets and if you do not disclose the asset, it could affect the process of your bankruptcy. Knowing how your assets are affected at the start of a bankruptcy is much easier to deal with than having a surprise later in the process that cannot be fixed. And of course if they can be protected by filing a consumer proposal, that would be even better.

Call us at 310-PLAN in order to discuss your financial situation and know how your assets would be dealt with in a personal bankruptcy.

Posted by Norma Yau, Trustee @ 2:29 PM

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