Assignment 11

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Fanshawe College *

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3041

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Law

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Jan 9, 2024

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doc

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2

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Drop box Assignment #11 Bankruptcy and Insolvency LAWS 3041 F23 Student Name: Student ID: Recommended resource: https://bankruptcy-ontario.org/ 1. Under the Execution Act Ontario , some property is exempt from being seized or a portion of the value is allowed to be retained from the bankrupt (assets you can keep). See: What do you get to keep if you go bankrupt? When you go bankrupt, you get to keep these items: - All necessary clothing; - One motor vehicle worth up to $7,117 (car, truck, etc.); - $14,180 worth of household furnishings and appliances; - $14,405 worth of tools of the trade (equipment that you use to earn a living); - Certain types of life insurance; - All RRSP, RRIF and SPSP (Deferred Profit Sharing Plan) savings except contributions made in the 12 months before your bankruptcy. 2. If I file for bankruptcy will I lose my house? Explain! If you file for bankruptcy, losing your house depends on the value of your house and how much you owe on the mortgage. Under the Ontario Execution Act, if the value of your house is less than $10,783, then you can keep your house. However, if your house is more than that value, then they can take it and put it up for sale. 3. Is there a cost to filing bankruptcy? See: What do you lose if you go bankrupt? Costs of going bankrupt a) What are base costs and what is the minimum period for a first time bankruptcy? The base costs that need to be covered each month is for government filing fees, mailing costs, court fees, and other administrative costs during a bankruptcy. The minimum period for a bankruptcy is nine months. b) What happens to my inheritance during my bankruptcy? If you inherit any money during bankruptcy, the money must be surrendered to the trustee.
4. List 3 reasons why a consumer proposal may be better than bankruptcy? https://bankruptcy-ontario.org/avoiding-bankruptcy/consumer-proposals/ 1. You can settle your debt for less than you owe, often as low as 35%. 2. Wage garnishments and other legal actions stop. 3. You keep your assets like your house, car and investments. 5. How long does a bankruptcy effect my credit rating vs a consumer proposal? http://bankruptcy-ontario.org/bankruptcy-advice/long-bankruptcy-affect-credit-report/ Bankruptcy will remain on your credit rate for 6-7 years after you are discharged, depending on who you go through. For a consumer proposal, it will remain on your credit score for 3 years after all your payments are completed.
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