What Assets Can New Brunswick Residents Keep In Bankruptcy?
When an individual files for personal bankruptcy they assign all of their assets to the trustee to be liquidated for the benefit of their unsecured creditors. That means any assets that have equity above and beyond what is owed against them must be recovered by the trustee.
However, there are some assets that are exempt from seizure. Generally speaking, they are:
- Furniture and household goods up to a maximum value of $5,000
- Food, clothing, and fuel for the debtor and his family
- RRSPs except for contributions in the past 12 months
- One motor vehicle per debtor up to a maximum value of $6,500, subject to the rights of a secured creditor, if the vehicle is required by the debtor to earn a living and no alternate means of transportation are available
- Health and medical aids
- 2 horses and harnesses, 2 cows, 10 sheep, 2 hogs, 20 fowl, and food for 6 months
- Tools of trade, equipment, and books up to a value of $6,500
- Household pets
- Seed grain and potatoes required for planting in the following quantities: 40 bushels of oats, 10 bushels of barley, 10 bushels of buckwheat, 10 bushels of wheat and 35 barrels of potatoes.
If all or a portion of the asset is not exempt the bankrupt person generally has the option of keeping the asset by repurchasing it from the bankruptcy estate.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice.