After declaring bankruptcy in British Columbia, the bankrupt is required to sign a statement listing his or her assets and liabilities, and can ultimately retain a certain amount of assets. However, if the assets are worth less than a certain amount or are of a particular type, the victim will not be required to turn them over. These consist of the following:
• Any unrestricted RRSPs acquired more than one year ago. All items purchased within the previous year will become payable.
• Items with a domestic value of $4000.
• Homes in the remainder of the province, excluding Victoria and Greater Vancouver, have equity up to a maximum of $9000. Greater Vancouver and Victoria receive up to $12,000 in equity. If the home's equity exceeds the exemption amount, the victim may be required to repay the entire amount. This indicates that if the home has $18,000 in equity, the bankrupt may be required to pay the complete $15,000 and may not be eligible for the exemption. As bankruptcy laws are subject to change, it is prudent to seek the assistance of a professional trustee.
• There are no restrictions on the distribution of essential garments and medical supplies.
• Work equipment with a value of $10,000.
• If the individual is delinquent on child support payments, the automobile exemption is reduced to $2,000 from its normal value of $5,000. As with the home, if the car's value exceeds the exemption limit, the victim is not eligible for an exemption.
In this situation, it is crucial to have a conversation with a trustee because he or she can help the victim comprehend what is legally exempt. Certain pension plans, life insurance policies, retirement savings plans, and court awards for pain and suffering are exempt from bankruptcy in British Columbia.
Since some assets can be retained, it will be necessary to return others. These products consist of (but are not restricted to):
• Cash assets including term deposits, bonds, educational savings, GICs, equities, and savings must be given to the trustee.
These and numerous other valuable items are not exempt and must be turned over to the trustee. What will work best is selecting a professional who can guide the victim through the entire procedure safely and legally. It is ideal to use a professional whose goal is not to profit financially from the solution chosen.""
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