Bankruptcy - Two cars for household allowed? - Canada

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RE: Two cars for household allowed?

Postby bartongoth » Tue Nov 02, 2010 07:37:04 AM

You may want to be careful, while differences do exist in each province across most of the country you are not permitted to "stack" the automobile exemptions (i.e. you cannot combine the two and use them for one vehicle). That is the way it is in Alberta and there is very clear case law on that in most of the country, so you may want to contact a local trustee to verify whether stacking is permitted.
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RE: Two cars for household allowed?

Postby footloose » Fri Oct 22, 2010 05:46:20 PM

As you are probably aware, in B.C.the exemption for an automobile is

$5,000. If you and your wife file a joint bankruptcy but the automobiles are owned individually, then you may claim a maximum exemption of $5,000 for each automobile or a total exemption of $10,000. On the other hand, if both automobiles are jointly owned, then the maximum exemption that can be claimed is $5,000.

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RE: Two cars for household allowed?

Postby bhm8hwcm » Fri Oct 22, 2010 01:13:34 PM

Thanks for this. It would be a joint filing as we are both responsible equally for the debts. So any thoughts on what the exemption for cars would be?

thanks
Barry
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RE: Two cars for household allowed?

Postby footloose » Fri Oct 22, 2010 12:55:31 PM

Hi average_joe

Joint bankruptcies are available in Canada providing the persons holding debts are substantially the same debt. So, in order for 2 people to file jointly, they must have a majority of debt in common and held jointly.

Regardless, it is at the option of the Trustee who accepts the engagement to choose to file jointly or separately depending on the details of the situation.

Joint filings are available for married spouses, unmarried ( common-law )
spouses, same-sex married spouses, unmarried same-sex

( common-law ) spouses and parent and child.
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RE: Two cars for household allowed?

Postby average_joe » Fri Oct 22, 2010 12:59:04 PM

If I were a betting man and your filing bankruptcy joint it would be $5000.00 combined, but i could be wrong. Why not pick up the telephone and call a bankruptcy trustee in your area and get the answer within 30 seconds?

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Two cars for household allowed?

Postby bhm8hwcm » Wed Oct 20, 2010 11:02:22 PM

My wife and I are looking at declaring bankruptcy jointly. I understand there are personal exemptions. We have two cars and I understand there is a $5000 car exemption that can be claimed. Can we both claim the $5000 bringing the total to $10000 or is it $5000 for the household?

Thanks
Barry
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