Moneyandbusiness.ca - Your Ultimate Small Business Guide
Bankruptcy Newfoundland and Labrador
What Assets Can Be Kept by a Debtor In Newfoundland?
When declaring bankruptcy in Newfoundland, the following items are to be exempted from the bankruptcy process and therefore will not be seized by a trustee in bankruptcy.
Bankruptcy Newfoundland will leave you with certain amount of items that is required and is reasonable according to the bankruptcy Newfoundland rules.
Bankruptcy Newfoundland and A House
Let’s begin looking at the bankruptcy Newfoundland rules and regulations by considering what will be the effect of a bankruptcy on a home in Newfoundland.
There is a $10,000 exemption limit placed on the placed on a home in Newfoundland. What that means is that if there’s any equity in your home above $10,000 your trustee in bankruptcy will seize your home and sell it to get that equity. To understand this correctly would strongly recommend that you watch the five video series on introduction to bankruptcy in Canada
Bankruptcy Newfoundland and General Exemptions
They are many exemptions in Newfoundland when filing for bankruptcy that does not have a specific limits set. What this means is that all particular items within those categories will not be touched in a Newfoundland bankruptcy. These items includes the following.
All food items that are required by the bankrupt and their dependents are fully exempt with such a quantity that can last for 12 months.
Any medical aids or dental appliances that are required by the bankrupt in Newfoundland or their dependents are fully exempt and there is no limit as to the value of these that can be kept.
Any pets that are not for business use are fully exempted under the Newfoundland bankruptcy laws. You will be allowed to keep your pets.
If there is any personal property that is used by an impending bankrupt in Newfoundland to earn an income than that personal property will be exempted to a maximum of $10,000.
Bankruptcy Newfoundland and Clothing
In bankruptcy for Newfoundland clothing items for the bankrupt or those who depend on them are exempted to a maximum of $4000. Your trustee in bankruptcy will ask you if there are more than $4000 value in clothing that is in your possession, and if the answer is yes they will require a list of everything, and that excess will be seized by a trustee. If the answer is no “I do not have more than $4000” then the trusty will leave that alone and go to the next question in their first interview with you.
Bankruptcy Newfoundland and Household Items
Any items that are used for everyday living are exempted to a maximum of $4000. This would include household furnishings, appliances and anything else in the home that is of some significant value.
Bankruptcy Newfoundland and A Vehicle
Newfoundland is one of the most strictest provinces where a vehicle limit for exemptions are concerned. There is a maximum limit of a vehicle of $2000. What that means is that if the vehicle is valued more than $2000 then that vehicle can be seized by a trustee and sold.
Bankruptcy Newfoundland and Sentimental Value Items.
Newfoundland is one of the few provinces that of listed sentimental value items. This can include family heirlooms, paintings and other items than our cherished by families and are handed down from generation to generation. The maximum value such items as $500. If a sentimental value is valued more than that the trustee in bankruptcy will seize it and sell it. The trustee will ask what the value of the item is. Unless there is something like an insurance policy on that sentimental item, there is no way that a trustee will have an appraisal value of anything other than what you’ve told him or her.
However one of the best things about a bankruptcy in Newfoundland is that all pensions including the RRSPs and the RRIF’s are fully exempted and your trust in bankruptcy cannot touch that.