Briitish Columbia, BC Bankruptcy Exemptions

Equity is the excess that the value of an asset has over any charges or encumbrances against that asset.

For example, if you have a car worth $10,000 and there is a $6,000 secured debt against it then the equity in the car is $4,000. In BC the exemption for a car is $5,000 so in this example you are entitled to the equity of $4,000 and the unsecured creditors cannot take this.

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BC Bankruptcy Exemptions are:

• Equity in a home in Greater Vancouver and Victoria = $ 12,000.  In the rest of the province   = $ 9,000;
  
• Equity in Household items   = $ 4,000;
  
• Equity in a Vehicle    = $ 5,000;  The vehicle exemption drops to $2,000 if the debtor is behind on child care payments (to facilitate the enforcement of Maintenance Orders)
  
• Equity in work tools    = $ 10,000;