You don't lose everything when filing for bankruptcy. Some assets are exempt, so you get to keep them. It is important to know what your rights are as a debtor and to make sure those rights are respected. Here is an explanation of what you can keep if you file for bankruptcy.
What Can I Keep If I File For Bankruptcy?
Have you ever wondered what you can keep if you file for bankruptcy?
Many people worry that they will lose everything if they file for bankruptcy but this isn’t the case.
Fortunately, there is a piece of provincial legislation in Newfoundland and Labrador called the Judgment Enforcement Act.
What this legislation does is it makes some assets exempt from seizure meaning it allows you to keep certain things – even if you file for bankruptcy.
The exempt assets (things you can keep) are:
• Equity in your principal residence (your home) up to $10,000
• One motor vehicle to a value of $2,000
• Household furniture to a value of $4,000
• Registered Retirement Savings Plans (RRSPs)
• Registered Retirement Income Funds (RIFs)
• Deferred Profit Sharing Plans (DPSPs)
• Tools of the trade to a value of $10,000
• Items of sentimental value up to a value of $500
• necessary clothing of the debtor and his or her dependents that is of a value not exceeding $4,000
To find out more or if you have any questions about this contact Sean today.
If you’re wondering if you can keep your house, car or truck click here to find out more.