top of page

What Happens to Your Assets after Bankruptcy?

A white collar employee making a couple understand the contents of a document

Not sure what will happen to assets after you file for bankruptcy? F. J. Zielski & Associates Inc in Kingston can help you make the best decisions for your future.

 

Those who struggle with their finances may find themselves coming to a crossroads where they must decide how to resolve significant debt. Filing for bankruptcy in Kingston, Belleville or Trenton is far from the only debt solution available, but is arguably the most drastic because it seriously impacts your credit rating and ability to obtain credit, immediately ceases legal action that your creditors may have begun against you, and liquidates many of your assets.


If you make the decision to file for bankruptcy, a licensed insolvency trustee will act as the liaison between you and your creditors, following the regulations laid out by the Bankruptcy and Insolvency Act. He or she will often meet with you in advance to discuss and explain a few different options to handle your debt, then again to sign any applicable paperwork, and file the necessary documents on your behalf.



Assets Exempted from Bankruptcy

Many of your assets, those not exempted by the government, are repossessed to help pay off your debt to creditors. The various assets not taken away and liquidated include one vehicle not valued above what is prescribed or an amount of $7,117, clothes that are deemed necessary and ordinary, plus household furniture and other items such as utensils and food valued at a prescribed amount or just over $14,180.


Other items are tools of trade or tools for farming of a prescribed amount or up to approximately $14,405 and $31,379 respectively, and not exceeding 100 acres of land or 14 bushels of potatoes, as well as pensions, some life insurance policies and some RRSPs. In exchange for this, most of the debt you owe would be wiped clean, depending on whether it is secured or unsecured.

 

Other Drawbacks in Filing for Bankruptcy

The most significant drawback is the negative impact on your credit report. By filing for bankruptcy in Kingston, Belleville or Trenton, you receive the lowest possible rating of R9 on your credit score. Your bankruptcy is only cleared from your credit history after seven years of filing for bankruptcy for the first time. Further, you are only discharged from your bankruptcy after a minimum of nine months and up to a maximum of 21 months.


You are also required to obtain credit counselling from a Licensed Insolvency Trustee, like F. J. Zielski & Associates Inc, and must attend the first meeting within the ten to 60 days of filing. The second must be at least 30 days after the first and within 210 days after you declared bankruptcy. Both will involve learning how to improve your financial management to help you avoid facing debt again in the future.



Thinking About Bankruptcy in Kingston? Contact F. J. Zielski & Associates Inc

Growing debt is no small matter, but resolving it does not have to be solitary and stressful. Licensed Insolvency Trustees are available for consultations to review your debt solutions with you, such as filing for bankruptcy in Kingston, Belleville or Trenton. F. J. Zielski & Associates Inc offer helpful guidance to various clients to overcome financial struggles, protect as many assets as possible, and rebuild your life.

 

Take Control and Hit the Z-Key F. J. Zielski & Associates Your Trusted Friends at Undoing Debt.

Leave a comment

Mailing Address

298 Coleman Street,

Belleville, ON, K8P 3J1

 

 

Hours

Monday – Thursday: 9:00 AM - 5:00 PM

Friday: 9:00 AM - 4:00 PM

After hours appointment available upon request.

Open virtually 24/7

Contact Us

F. J. Zielski & Associates Inc

298 Coleman Street, 

Belleville, ON, K8P 3J1

 

Email:

help@moneytrouble.ca

Serving All of Southern Ontario

GTA
Ajax
Whitby
Oshawa
Oshawa
Clarington
Peterborough
Lakefield
Port Hope
Cobourg
Grafton
Colborne
Brighton
Quinte West
Prince Edward County
Stirling
Marmora
Campbellford
Belleville
Madoc
Bancroft
Tweed
Cloyne
Northbrook
Tyendinaga
Kaladar
Napanee
Kingston
Sydenham
Gananoque
Smith Falls

Phone

Toll Free: 1-877-966-8060

Belleville: 613-966-8060

Cobourg: 905-372-2237

Kingston: 613-548-7070

Trenton: 613-394-0707
Fax: 613-966-9018

Social

bottom of page