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.