Let's consider an example - an individual from Kitchener-Waterloo filed personal bankruptcy and his only asset was a vehicle worth $6,000 (there were no liens against the vehicle). If the individual filed personal bankruptcy prior to June 22, 2006, the individual would have to pay $6,000 to the trustee to keep the car or the trustee would be required to sell the vehicle as the vehicle was greater than the exemption limit.
Under the new rules (ie the personal bankruptcy was filed after June 22, 2006), the first $5,650 is exempt and the bankrupt individual could pay the difference of $350 ($6,000-$5,650) to the trustee and keep the vehicle. In the Kitchener-Waterloo area, vehicles are vital mode of transportation for individuals to get to and from work, therefore this revision in the law will assist individuals in keeping their vehicles under a personal bankruptcy.
At Hoyes, Michalos & Associates Inc. in Kitchener, Ontario, we understand that vehicles are a necessity in many individuals' lives. We can assist individuals develop a plan for the future and deal with their past debts, so to discuss your situation in greater detail e-mail us a question or give our Kitchener office a call at 519-747-0660 or 310-PLAN (no area code required) to arrange a free meeting to discuss your situation in more detail.
Related Links:
Good Government Act 2006 (see Schedule B Ministry of the Attorney General, Section 6(1) Exection Act)
Ontario Execution Act limits
Ontario Execution Act
posted by Scott Schaefer, CA @ 9:55 AM
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