Canadians have many myths regarding bankruptcy.
Fortunately, the Bankruptcy and Insolvency Act (BIA) in Canada assumes one’s innocence. So, the law makes you innocent and provides you enough opportunities to come out of your debt positively.
Unfortunately, “I will lose my home.” is the biggest myth about bankruptcy.
So, you must be aware of legal provisions that each province and territory in Canada have declared a list of exempted assets and limits on the value of each type of exemption.
List of Exempted Items in Bankruptcy
For instance, the Execution Act and Regulation in Ontario declared the following list of exempted items in bankruptcy.
- Personal clothing – No limit
- Household furniture, food, fuel, and equipment – Up to $13,150
- Motor vehicles – Up to $6,600
- Tools for your work – Up to $11,300
- Particular farm property – Up to $29,100
- Home – Up to $10,000
- Pension plans, life insurance policies, & RRSPs – No limit
The Provincial Exemption Limit to Keep Your House When You Go for Bankruptcy
- Alberta – Up to $40,000 in equity when you 100% own your home. Otherwise, it reduces as your ownership reduces.
- British Columbia – Up to $12,000 in equity in Vancouver and Victoria. In the rest of the areas in the province, it is $9,000 in equity.
- Manitoba – Up to $15,000 in equity when jointly owning the home. If you are a sole owner, it’s $20,000 in equity.
- Ontario – Up to $10,000 in equity.
- Quebec – No limit. However, your home is considered unseizable if its value is less than $20,000.
- Saskatchewan – Up to $50,000 equity in your active home.
How I Calculate What Home Equity I Own for My Home?
There is a known formula to count your home equity.
Home Value = Amount Owed on Mortgage – Currently Owned Property Tax = Equity.
Things You Should Know Before Declaring Bankruptcy in Calgary, Edmonton, Lloydminster, & Alberta
You can do four or five things before declaring bankruptcy in Calgary, Edmonton, Lloydminster, and Alberta in Canada.
Get the Right Counseling Service
You might not be aware of all laws and regulations prevailing in your province or federal government in Canada. So, you must go for expert advice. We hope Credit720 is the best alternative for you in Canada. They will consider your contexts, possible options, and income sources to get out of debt. They will give you appropriate suggestions or show ways to pass through the procedure to avoid any mishap due to your debt.
Debt Negotiation Red Deer
Credit720 helps you in debt negotiation in Red Deer. However, we suggest some good tips in due course.
- Contact your creditors and place your concerns regarding your debt or take our active help in debt negotiation in Red Deer.
- Pay debts with a high-interest rate first.
- Stop taking new debt at all.
- Please provide us with your documents of income and expenses to plan your debt payment.
- You can place your home as an equity in your debt. It will reduce your higher interest-related burden.
Bankruptcy Service in Calgary by Credit720
Credit720 offers bankruptcy services in Calgary in Canada. We help our clients in the following ways.
- We provide contacts with licensed insolvency trustees in Calgary in Canada.
- We provide free or paid consultation services.
- Consider overall costs when you look for service from a licensed trustee, including trustee fees ($1,00-2,000), court fees ($200), and compulsory counseling sessions ($55/hour).
- Think of a Consumer Proposal instead of bankruptcy.
- We provide budgeting and financial advice sessions to our clients.
Pay in Full Amount
Don’t stay up to pay the minimum amount in each installment. It may lead to a debt spiral and overburden you in the long run due to accumulated interests. So, always try to pay the total amount in each installment.
Think of Consumer Proposal
If your total debt is not exceeding $250,000, you have the option to make a consumer proposal instead of declaring bankruptcy. According to OSB rules, your overall income will be considered in deciding to repay installments. Submitting consumer proposals to OSB will stop any demands for direct payment from creditors and legal proceedings because the client should pay the trustee, not the creditors.
Rebuild Credit with Consumer Proposal
Bankruptcy might not provide you an opportunity to rebuild your credit quickly, but consumer proposals can. If you are able to repay a loan in the shortest period, you have room to rebuild your credit score quickly.