Most assets, other than basic clothing, furniture, pensions, some RRSP’s and Like Insurance, or a basic vehicle, if not entirely secured to someone else, must be turned over to the trustee, or a deal made to pay their fair market value. The trustee obtains a fair value for your assets and divides the money amongst your creditors. As the creditors just expect a fair amount for your assets, you can often purchase your items back from the trustee (eg a second car or home equity) if you can afford to, as mentioned above.
Asset is the word used to describe items you own. Sometimes you will own an asset outright or sometimes you will have borrowed money to purchase the asset (ie a car loan, mortgage, investment loan). In cases where you have borrowed money to buy an asset, if you do not make the required payments the company you owe will likely have the right to take your asset away from you.
Bankruptcy only deals with your unsecured debt. For secure debts such as car loans and mortgages, you can continue to deal with those creditors under the original agreement you made if you want to keep the asset. If you want to end a secured debt and have that creditors’ loss included in the bankruptcy, you must turn the secured asset over to the trustee when you become bankrupt. A secured creditor cannot simply seize your asset because you filed for bankruptcy however if you don’t maintain the required payments, they could still repossess your asset.
Consumer proposals are alternatives to bankruptcy. Consumer proposals are legally binding agreements which protect your assets from debt collections. If you are eligible for a consumer proposal, and providing you uphold your payment responsibilities as laid out in the consumer proposal, assets are protected unless cashing them was part of your accepted offer to the creditors. You do not give up any assets in a proposal but their value will be considered when coming up with an offer to your creditors.
Extremely professional service by Mr. Thatcher and his team. Mr. Thatcher and his team were always available and quick to answer any questions concerning bankruptcy. I would highly recommend this company to anyone that would require his services!
I have worked with Kevin and his office for many years and would recommend his services to anyone who is having financial difficulties. He is very professional and has spent many years helping people get out of tough debt situation.
The staff at Kevin Thatcher & Associates are incredibly understanding, non-judgmental people who honestly advised me of all my options before I chose to go bankrupt. I was surprised at how easily they broke down the process for me step-by-step so I was able to meet all the requirements.
I just wanted to thank everyone at Kevin Thatcher and Associates for their help. I was at wit's end and couldn't cover most of my bills. I was afraid to answer the phone ever as it might be another collector calling! I was so depressed.
I was looking for a bankruptcy firm and was recommended Kevin Thatcher and Associates. I initially spoke with his pleasant and knowledgable staff(Anna) over the phone. I was very impressed by her and her soft approach being in a difficult situation.
Very kind, caring and helpful group at Kevin Thatcher and Associates.
I was in a real bind with a lot of debt from credit cards and payday loans but I met with Kevin and his staff were very understanding of my difficulties paying. I paid for 21 months under these federal income rules, but was way cheaper than if I did nothing.
Staff is extremely kind and knowledgeable! They took a stressful situation and made it more manageable, so thankful for their expertise.