What’s the process to file for bankruptcy? Will I lose my house or car?
Question & AnswerWhat’s the process to file for bankruptcy? Will I lose my house or car?
1. List your assets
When you first meet with your trustee, you will need to give them a list of all your . This will help them compare your total and assets. The trustee will use that information to make a plan for your . Your assets include your:
- house and furniture
- car and other vehicles
- clothes and jewellery
- investments like an , Canada Savings Bonds, and an
The trustee will decide what needs to be sold to help pay your creditors during bankruptcy.
In Ontario, there are very few things that you are allowed to keep when you file for bankruptcy. You can keep:
- a reasonable amount of clothing
- one motor vehicle worth up to $6,650
- $13,150 worth of furniture and appliances
- $11,300 worth of tools that you use for your job
- your home, if it has less than $10,000 in
There are also some types of investments, insurance, and savings that you may be able to keep. For example, you can usually keep:
- money you have saved or receive payments for
- some types of life insurance
- some types of savings, if you had them more than a year before bankruptcy
If you have assets that are not on the list, your Licensed Insolvency can explain your options. Depending on your situation, you may have to sell some of your assets during your bankruptcy.