Real Property and Other Hard Assets FAQ Q What might happen to my property? A This should be the most important question not only in understanding what options exist but also for planning the outcome you desire Choices available may include some of the following Keep the property Sell the property to a family member or friend Sell the property to a stay in the house Sell the property to a an unknown arms length third party where you leave your home Give the property to the creditor Allow the property to sell at a foreclosure auction or sheriff's sale Q Wouldn't I always want to keep my property? A No You may find this a foreign concept at first but a financial hardship requires that each asset be reviewed before an intelligent decision to keep it can be made Q When should property be given up? A The most obvious case occurs with a negative asset an asset which in reality is a liability Q How can an asset become a liability? A Examples of potential negative assets include Properties where environmental cleanup costs exceed property value Properties where renovation costs of an uninhabitable building exceed potential value

Frequently Asked Questions on Bankruptcy Assets You must disclose all your assets to the Official Assignee Your assets at the date of your bankruptcy become the property of the Official Assignee Strictly speaking you are entitled under the Insolvency Act to keep cash up to out of that held at the time of bankruptcy tools of trade to the value of and furniture and personal effects to the combined total of Whether any assets are seized will be up to the discretion of the Official Assignee The Official Assignee will take into account the costs of realisation the practicality of sale and the needs of the individual Normally household effects are not taken You should be aware that the Official Assignee may sell your motor vehicle for the benefit of your creditors The decision will be made on a case by case basis taking into account the value of the vehicle any amount owing and whether the vehicle is jointly owned Please let the Official Assignee know immediately if your car is not insured The money you have invested in your house is an asset in your bankruptcy even though there may still be money owing on your mortgage

Bankruptcy Information FAQ's Chapter amp Information View our PowerPoint presentation on This page will provide the person thinking about filing bankruptcy the bankruptcy information he or she needs to make an informed decision After reading the following FAQ information you will have a good understanding of what the law allows when you meet with your Bankruptcy Lawyer or Attorney If your questions are still not answered after reading the following information we have an feature so you can ask a bankruptcy lawyer or attorney in your area a question For Chapter Bankruptcy profiles and to hear a Bankruptcy Trustee's views on filing bankruptcy for Chapter and Chapter WHAT IS CHAPTER BANKRUPTCY? Chapter bankruptcy sometimes call a straight bankruptcy is a liquidation proceeding The debtor turns over all non exempt property to the bankruptcy trustee who then converts it to cash for distribution to the creditors The debtor receives a discharge of all dischargeable debts usually within four months In the vast majority of cases the debtor has no assets that he would lose so Chapter will give that person a relatively quick fresh start One of the main purposes of Bankruptcy Law is to give a person who is

YOU ARE HERE Main Effects of Petitioning for Bankruptcy Main Effects Main Effects of Petitioning for Bankruptcy The Risk to Your Current Assets With bankruptcy your assets can be sold to pay your creditors This makes bankruptcy a more sensible option where you don't have much in the way of assets It also means declaring bankruptcy to cope with non priority debts puts all the debtor's property at risk a strategy that would seldom be advised Only the property owned by the debtor is directly at risk jointly owned property may be sold by the trustee to realise the value of the debtor's share Additionally in bankruptcy the trustee can investigate any gifts or undervalued sales made in the previous five years If the gifts or sale were made when the debtor was insolvent the trustee can take steps to claim the value of the gift or undervalued part of the goods from the recipient The Risk to Your Future Assets Where the debtor expects to receive an inheritance or already has assets consideration should be given to any increase in value they may have whilst a bankruptcy order is in place Arranging matters so as to avoid losing

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