Vancouver Island trustee, Ken Glover gives an interview on bankruptcy just prior to Christmas, 2005.

Two days before Christmas and my credit cards are so maxed out, I had to wear gloves to take my red-hot Visa and MasterCard out of my wallet.

“I’m not financially tapped out,” I told Trustee in Bankruptcy Ken Glover as I turned my pockets inside out to prove the point. “I’m overtapped.”

Vancouver Island trustee, Ken Glover gives an interview on bankruptcy just prior to Christmas, 2005. The article was published in the Saanich News on December 23, 2005.

Ontario bankruptcy exemptions received a cost of living increase.

Ontario bankruptcy exemptions received a cost of living increase (reviewed every five years) and go into effect on Wednesday December 14, 2005.

Ontario Bankruptcy Exemptions are:

Clothing $ 5,650.00
Household Goods $11,300.00
Tools of the Trade $11,300.00
Farmers $28,300.00
Motor Vehicle $ 5,650.00

The property exempt from seizure is set by the provinces and territories and applies to the equity in the asset.

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 $5,000 and there is a $2,000 secured debt against it then the equity in the car is $3,000. In Ontario the exemption for a car is $5,650 so in this example you are entitled to the equity of $3,000 and the unsecured creditors cannot take this.