Canada Bankruptcy Exemption Law ? Dispelling Bankruptcy Myths ...

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The right sources of Canada bankruptcy exemption laws and subjects that deal with the matter of bankruptcy can dispel even the most stubborn and prevalent myths concerning this legal action. With qualified information from reliable sources such as the website of the Office of the Superintendent of Bankruptcy and a local bankruptcy trustee certified by the same office, education on bankruptcy exemptions is possible so that the prospective filer can push through with filing for bankruptcy with the important information that he or she needs. Here are a couple of myths that can cause the potential filer to look for less beneficial means of debt relief if he or she does not have the correct resources on Canada bankruptcy exemption:

Bankruptcy Equals Liquidation of the Filer?s Home

The fear of losing one?s home is a terrible thing to face, and has undoubtedly caused many debtors to set aside the idea of filing for bankruptcy as a debt management option. This fear has no basis, as in truth, the Bankruptcy and Insolvency Act permits the filer to retain home ownership no regardless of how large the person?s overall debt is. Together with other asset exemptions, retention of the individual?s residence is possible due to bankruptcy exemptions, provided the property in question meets the requirements stated in local insolvency law.

In some provinces, a filer will get to keep his or her home if the equity value does not exceed the exemption allowance limit of $40,000. Your own home equity may exceed this, although you should ensure that you have arrived at the right value by including costs such as market evaluations and real estate commissions in your calculations. If your home equity still goes beyond the set limit, you may pay the difference between your actual equity and the required equity level to keep your home. ? Equity allowances often vary from one area to another ? it is essential that you know exactly what the equity limit is for your area by talking to a locally-licensed bankruptcy trustee.

????Bankruptcy Takes Away All Assets??

Filers may experience considerable asset loss during bankruptcy as a result of asset liquidations by the bankruptcy estate ? these proceeds are used to pay creditors. However, exemption laws in the country have been put into place to protect filers from the liquidation of assets that are required for the individual to maintain a relatively decent standard of living and work for income that can help improve finances after a bankruptcy declaration. Here are some additional asset exemptions that have been into place in provinces around the country:

• A car or other vehicle
• Furniture
• Food
• Clothing
• Equipment used for work

Again, it?s important to remember that exemptions vary from area to area.

The quality of assistance and information you obtain on bankruptcy influences the outcome of your overall debt management strategy. For correct and relevant information on the various things you need to know about Canada bankruptcy exemption law, talk to a licensed bankruptcy trustee in your area.

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