Personal Vehicle & Family Vehicle and Bankruptcy in Toronto
Question: I have a personal vehicle "86 Pontiac" value $2000, basic transportation.Through a serious family illness, I have become the primary care giver for a parent. Left work and have not been employed for 4+ years. Through the years debt has accumulated. The family purchased a physically challanged adapted vehicle to use for the parent, the vehicle was registered in my personal name as I am the only driver in the family, I pay the insurance through funds given by the family account.
How does this vehicle fit in my personal bankruptcy in Toronto?
Thanks
Answer: If you file for personal bankruptcy in Toronto, or anywhere in Ontario, you are permitted to keep one motor vehicle worth up to $5,650. If you own more than that, you would be required to either surrender the vehicle to the trustee, or pay to your bankruptcy estate the difference.
For example, if you own a $2,000 vehicle and a vehicle worth $8,650, you would declare that the first $5,650 of the $8,650 vehicle was exempt, and you would pay the trustee $3,000 to keep the vehicle. Since you are only permitted to declare one vehicle as exempt, you would also be required to pay the $2,000 value of the other vehicle if you wanted to keep it.
If there are liens or loans against any of these vehicles, the answer would change.
These rules can get complicated, so I suggest you call us at 310-PLAN, or e-mail us for further information.
Labels: bankruptcy Toronto
posted by Questions @ 1:06 AM
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