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When might bankruptcy in be necessary for you?
As a resident of Saskatchewan, Canada, if you are unable to pay your bills as they come due and you are unable to file a proposal to creditors, it may be necessary to file an assignment in bankruptcy. Since you file bankruptcy in your province of residence, if you reside in Saskatchewan, you would file your assignment in bankruptcy there. Information on filing for bankruptcy outside of Saskatchewan can be found here.
The concept behind bankruptcy in Saskatchewan is this: you assign (surrender) everything you own to a trustee in bankruptcy in exchange for the elimination of your unsecured debts. There are a number of differences between bankruptcy in Saskatchewan and bankruptcy in other parts of Canada. For example, in a bankruptcy in Saskatchewan you are allowed to keep certain assets, as described below.
Do I really lose everything?
Under Saskatchewan law, certain things are exempt from seizure by a trustee in bankruptcy. They include:
Non-Farm Property
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The necessary and ordinary clothing of himself and his family. |
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Furniture and household furnishings and household appliances, to the extent of $4,500. |
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Grain, flour, vegetables and meat, when converted into cash to provide food and fuel for heating purposes for the debtor and his family until the next ensuing harvest. |
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One motor vehicle where it is necessary for the proper and efficient conduct of the debtor's business, trade, calling or profession. |
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The books of a professional person. |
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The tools and necessary implements and office furniture and equipment, to the extent of $4,500, used by the debtor in the practice of his business, trade, calling or profession. |
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The homestead, provided it is not more than one hundred and sixty acres. |
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The house and buildings occupied by the debtor and also the lot or lots on which they are situated according to the registered plan thereof to the extent of $32,000. |
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The trailer or portable shack occupied by the debtor as living quarters. |
Farm Property
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The necessary and ordinary clothing of the farmer and his family. |
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Furniture and household furnishings and household appliances, to the extent of $10,000. |
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Produce of a farm sufficient, when converted into cash, to provide food and fuel for heating purposes for the farmer and his family until the next harvest. |
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All livestock, farm machinery and equipment, including one automobile or one farm truck, that are reasonably necessary for the proper and efficient conduct of the farmer's agricultural operations for the next 12 months. |
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One motor vehicle, where it is necessary for the proper and efficient conduct of the farmer's business, trade, calling or profession, but only if that motor vehicle is not in addition to one mentioned in #4. |
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The books related to any profession practised by the farmer. |
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The tools and necessary implements and office furniture and equipment, to the extent of $4,500 used by the farmer in the practice of his business, trade, calling or profession. |
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The house and buildings occupied by the farmer as his bona fide residence and the lot or lots on which they are situated according to an approved plan to the extent of $32,000. |
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Seed grain chosen by the farmer, that is sufficient to sow all his farm land under cultivation to a maximum amount equal to the product of:
(i) two bushels per acre, and
(ii) the number of acres of farm land under cultivation by the farmer. |
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The crop of the farmer to the extent that is sufficient, when converted into cash, along with any other means that he may have, to:
(i) pay all unpaid legitimate costs of harvesting the crop.
(ii) provide a necessary living allowance for the support of the farmer and his family until the crop of the following year is about to be harvested. and
(iii) provide necessary costs of his farming operations until that time. |
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The homestead. |
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Any trailer that is occupied by the farmer as living quarters and not in addition to the house and buildings already exempt. |
In Saskatchewan, technically, everything else that you own is seized by the trustee and sold to repay your creditors.
What happens to my house in Saskatchewan bankruptcies?
Like personal proposals, Saskatchewan bankruptcy only deals with unsecured creditors. Unless you have accumulated significant equity in your home, it will probably be unaffected by your bankruptcy. If you own your own home make certain to discuss the disposition of your home in detail with your trustee before you file bankruptcy.
Additional information about how bankruptcy in Saskatchewan affects your house.
If I declare bankruptcy in British Columbia, can I keep my car?
If you have clear title to your car (you haven’t pledged it as security for a loan) then you will be required to either pay the trustee the value of the car from your post-bankruptcy earnings or the trustee will be forced to seize and sell your car. If you have a car (or any other type of vehicle) make certain to discuss the disposition of your car with your trustee before you file bankruptcy in British Columbia.
Additional information about how filing for bankruptcy in British Columbia affects you car.
What is the next step in British Columbia bankruptcies?
If you are considering bankruptcy in British Columbia, please contact a nearby expert today, to arrange a free consultation.
For information regarding bankruptcy for British Columbia residents, we recommend the following sites.
For information on bankruptcy for Canadians living outside of British Columbia, we recommend that you look at the information available on www.moneyproblems.ca.
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