How Bankruptcy Works
Step 3: Selling Your Assets
Selling or Keeping Assets in Bankruptcy
& Allowable Income Guidelines
Each province has certain assets a bankrupt person may keep. Beyond those limits, your assets will need to be sold. This is the trustee’s responsibility.
Once you file for bankruptcy, your excess assets are assigned to your trustee so that they are able to sell them. You are not allowed to sell them. The money the trustee receives from the sale is held in trust for your creditors and paid to them as part of the process to settle your estate.
In addition to surplus asset guidelines, there are also surplus income guidelines. Depending on your total income and your personal and family situation, your trustee will advise you how much of your income is above the allowable income guideline in your bankruptcy. You will be required to pay a percentage of your surplus income to your trustee, typically on a monthly basis.
Common Questions About Bankruptcy and the Selling of Assets
- What is a bankruptcy trustee?
- Are liens discharged in bankruptcy?
- Are all debts discharged in bankruptcy?
- What does order of discharge of debtor mean in bankruptcy?
Continue on to steps 4-6: Creditor Notifications, Creditor and / or OSB Meeting – Your creditors are notified of your bankruptcy and a meeting may be called to give directions to your trustee. You may have to meet with the OSB under oath to discuss details of your bankruptcy.
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Contact a Trustee for More Info About Bankruptcy Assets or Us for Bankruptcy Alternatives
If you’re struggling to pay your debts and need more information about bankruptcy assets, contact a trustee. If you would like more information about bankruptcy alternatives, you can contact us today. One of our credit counsellors will answer your questions and provide you with guidance and information so that you can make an informed decision.
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