These four words are a top concern for anyone facing bankruptcy.
for property held in trust, exempt from seizure by Provincial legislation or
subject to a secured lien, the Licensed Insolvency Trustee (LIT) has an
interest in all your property for the benefit of the unsecured creditors. However, that doesn’t mean that if you file
for bankruptcy that you will lose your house or your vehicle.
To better explain, consider the following examples:
If you own a vehicle outright that has a value of
$6,500 or less and you require it for work, you are able to keep that vehicle.
If you had two vehicles, however, you are only able to claim the exemption for
one of the vehicles.
If you borrowed money to purchase your vehicle and the
vehicle value is now worth less than the loan balance, you are able to keep the
vehicle as long as you are able to make your loan payments, pursuant to the
loan agreement (secured lien).
If you own a home that is subject to a mortgage, the market value of the property and the mortgage balance will determine the treatment in bankruptcy. If the property value is worth less than the mortgage balance, there would be no equity and you could keep your home, as long as you continue to make your monthly payments and comply with the terms of the mortgage contract. However, if your property value is more than you owe on the mortgage, there is potential equity which the LIT has to realize on for the creditors. There are options for realization of equity that will be reviewed by the LIT.
every situation is unique, it is important that you work with a LIT to
determine your best path forward. Throughout my career, I have helped hundreds
of people gain control of their finances. Whether facing job loss, a major life
change, an illness, or growing expenses, most of my clients face the same
Consumed by financial stress
Living paycheck to paycheck
Borrowing from family and friends frequently
Losing sleep at night
On a cycle that never seems to end
Struggling to pay basic living expenses
you’re facing financial hardship, the best time to ask for help is now. You may
have options available to you that help you end the cycle of debt and avoid
If you have any questions on this topic or debt relief, I invite you to email me at firstname.lastname@example.org.
For more than 30 years,
MacKenzie, Gillis, MacDougall Inc., Licensed Insolvency Trustee, operating as
MGM Trustee, has helped thousands of people take control of their finances.
With multiple locations throughout Cape Breton, our compassionate,
knowledgeable and experienced team is here for you.