Your Licensed Insolvency Trustee will not take possession of certain assets if they are exempt from seizure. When you file for bankruptcy your assets vest in the trustee, but that being said there are assets that you will be able to keep. Each province in Canada has different exemptions, in British Columbia, the following assets are exempt:
Non-exempt assets, or assets that have a value over and above the above-mentioned exemption amounts must be turned over to the trustee or repurchased in order to keep them. Examples of these may include, but are not limited to:
Assets that you acquire during your bankruptcy, such as lottery winnings or inheritances, are also assets available to your creditors and must be turned over to the trustee.
It should be noted that in a consumer proposal, the assets usually do not vest in the trustee, but the trustee must consider the value of the non-exempt assets when determining what an offer to your creditors might look like.
We recommend that you speak to a Licensed Insolvency Trustee to find out more about how a bankruptcy or consumer proposal will affect your assets.
*If you are in arrears on child or spousal support, this amount is reduced to $2,000.