Unseizable property!
When you declare bankruptcy, you
must hand all of your property,
except for unseizable 
belongings, to the bankruptcy
trustee , who will draw up a
detailed inventory for sale
and distribute proceeds to creditors .
Every month, you will also be required to make
payments to the trustee, by cheque, based on your
income and instructions of the superintendent of bankruptcy
on surplus income. If your income is
irregular, the bankruptcy trustee will require
monthly statements of income and expenses to determine the
amounts to be paid to the bankruptcy
estate .
Seizable property: what you must turn over to the
bankruptcy trustee
- Buy-back or borrowing value of life insurance
policies, although several are unseizable.
- RRSPs (though some are unseizable).
- Valuable personal belongings that
are not essential to the household (ex.: works of art).
Since these goods are often difficult to sell, the trustee
could ask you for compensation, which would allow you to keep
them.
- Vehicles that are not used for
work. On the other hand, many vehicles tend to be leased or
financed, making them unseizable.
- Immovable property. Depending on the
case, the trustee can return the property to its creditor or
try to sell it. He could also conclude an agreement with you
on the time allowed for you to leave the residence and ask
you to make higher monthly payments during the time you
continue to inhabit the property. In some cases, you may be
allowed to keep your
house.
- Income tax refunds you were to
receive on income earned prior to the bankruptcy. These
amounts must be turned over to the trustee.
- GST refunds for those eligible for
the GST credit.
Unseizable property: what you can
keep
- Essential household items
(furniture, clothing, dishes, etc.) whose resale value does
not exceed $6,000.
- Instruments required for the
practice of a professional activity, such as
tools used by a mechanic or construction worker.
- Monies received as compensation for physical
injuries.
- Most employer-employee pension
funds.
- Child tax benefits.
