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What you keep
Afraid you'll lose everything in a bankruptcy?
Don't worry, if you're considering filing bankruptcy, you will not lose everything.
While it's true that some of your assets may have to be used to help pay your creditors, it is possible that you can keep them by paying your trustee the fair value for them. In addition, certain types of assets are protected by both federal and provincial laws and exempt from liquidation*.
Here are some assets that you can keep:
- Your RRSP's
- household possessions and personal items
- equipment you need for your work
Another positive: Often in a bankruptcy, you can keep your house and car as long as you continue to pay your mortgage and car loan.
Worried about your wages? Don't be.
You will still receive your wages directly from your employer but each month you will need to fill out an Income and Expense Form and send it to your trustee. Any money you earn above certain government standards is called "surplus income", and you will be required to pay a portion of this amount to the trustee during the bankruptcy. A Deloitte professional will be able to clearly explain this calculation to you.
A Deloitte trustee can advise you more about the potential impacts of filing bankruptcy so that you can decide if it is the right solution for you.