Why do I have to disclose all my exempt assets to the creditors, if I am filing for bankruptcy or consumer proposal?
The creditors’ have the right to get an understanding on all your current assets at the time of filing for bankruptcy or consumer proposal. It also helps creditors and the debtor if there is a differentiation between any assets acquired before or after filing for a bankruptcy or consumer proposal.
There is a likelihood, that most of the creditors are already aware of all your previous assets. When you apply for credit in the credit application there is an asset section. This plays a vital role in the approval or refusal of the application. It ensures that creditors have an idea of your assets, at least during the time of your credit application.
It is not uncommon that additional assets get acquired after your initial credit application. That’s why it still is the debtor’s responsibility to disclose all of his or her assets, to assist the creditors to make an informed decision.
If you need to know which assets are exempt assets in your particular situation, and how an equity of an asset is calculated, please contact us for a free, non obligation consultation. We are here to help!
What Assets Can You Keep in Personal Bankruptcy?
The Bankruptcy Insolvency Act, in conjunction with the Executions Act of Ontario, ensures there is a solution for every asset you want to keep during a bankruptcy.