0034 - Debt Related Queston: Bankruptcy Question # 0034

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QUESTION #0034:

When a person declares bankruptcy, are all of their possessions confiscated and sold?

ANSWER:

Under the Bankruptcy and Insolvency Act, a person’s possessions are exempt from seizure and sale in the following amounts:

• Household Goods - $4,000
• Motor Vehicle - $5,000
• Tools of the Trade - $10,000
• Equity in a Primary Residence - $12,000 in the GVRD and $9,000 outside this district

The person’s possessions are valued at a “garage sale” or “bailiff” pricing and are therefore, generally under the value amount allowed.