Rules regulating bankruptcy exemptions in Ontario, and specifically those pertaining to furniture and clothing in bankruptcy, say that in an event of a personal bankruptcy in Ontario, you are permitted to keep up to $5,650 worth of clothing and accessories, and up to $11,300 of normal household furniture and belongings.
At Hoyes, Michalos & Associates Inc., prior to bankruptcy we will have you make a list of all items in your house, and we will have you assign a fair value to each item. We define fair value as the amount you would get if you were to sell that item at a garage sale.
Thus even though you may have paid $300 for your television, if it is a few years old it is probably not worth more than $50 or $100 at a garage sale.
We will then request that you sign a sworn
affidavit to verify that your items do not exceed the values stated. As a result, we do not need to come to your
house to verify asset values for your household items.
If you have any further questions about the treatment your furniture and clothing would have in a bankruptcy, and about bankruptcy exemptions in Ontario in general, please call one our bankruptcy offices in Ontario or email one of our bankruptcy trustees at Hoyes Michalos today.