What Happens to Your Assets and Income
However, if you have a certain amount of equity in assets such as a vehicle or your home, your trustee will need to sell those assets and use the funds towards paying your creditors as part of your bankruptcy process. If you can afford it, you’re also able to “buy back” your assets, which means paying the value that’s above what you’re allowed to keep to your trustee.
Other assets that can be lost in bankruptcy include RESPs, tax refunds, RRSP contributions for the past 12 months, and other valuables. Every province has a list of bankruptcy exemptions, which are the things that you get to keep. These can include business tools and household effects up to a certain value.
Bankruptcy also restricts your income. Depending on your family size and makeup, 50% of all money you earn over a certain amount must be paid each month to your trustee, who will eventually disburse it to your creditors.