Personal Debt Solutions Canada - Bankruptcy Exemptions BC

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British Columbia Bankruptcy Exemptions

Here are the BC Bankruptcy Exemptions

Property exempt from seizure in a bankruptcy is set by the provincial government and applies to the equity in an asset. Equity is the difference between the value of the asset and what is owed on the asset.

(Sale values - Security = equity)

A general summary of the property you are able to keep is:

Statute: Read the Court Order Enforcement Act and Regulations.

Personal Debt Solutions Canada strongly recommends that you contact a trustee in bankruptcy in your province to review your situation. The Trustee will examine your circumstances and be able to determine which assets would be exempt if you were to file for bankruptcy. Knowing what you can keep if you go bankrupt in Canada is as important as knowing what you may lose if you go bankrupt in Canada.

For details on what you can keep if you go bankrupt in British Columbia and the rules for bankruptcy exemptions in British Columbia, please consult a trustee in your area.

CAUTIONS:

British Columbia Limitation Act

A new Limitation Act comes into force June 1, 2013 in British Columbia. The new Limitation Act will make the law easier to understand and bring B.C.'s law more in line with other provinces.

The Limitation Act sets out the time periods people have to start a proceeding to sue one another in the civil justice system. While many other laws set limitation periods, the Limitation Act sets the default regime, which means that unless another law sets the applicable limitation period, the Limitation Act applies.

Key Changes

Key changes include:

This inforation is a summary of what is coming into force in June 2013 and is not intended as legal advice and should not be relied upon for those purposes.

Until the new legislation comes into effect until June 1, 2013, the current Limitation Act governs how long people have to sue one another in the civil justice system in B.C.

Know YOUR rights in British Columbia

Debtor Rights

What Are Unreasonable Collection Practices in British Columbia?

The Business Practices and Consumer Protection Act of BC protects you from being harassed by debt collectors. It says a collector can't put unreasonable pressure on you, your family, or your employer.

It is therefore unreasonable for a collector:

In BC Debt Collectors Are Not Allowed To:

Dealing With An Unreasonable Collector or Collection Agency in British Columbia:

If you feel a collector is treating you in a rude, threatening or harassing manner, please review the Business Practices and Consumer Protection Act and Debt Collection Industry Regulations to determine if what you are experiencing contravenes the Act or the guidelines.

The Act does not prevent "reasonable" collection activity. Collection companies do have the right to collect on a debt that is in default and has been sent to them for collection. However, no one has the right to harass you. In fact, collectors calling you in a harassing manner are subject to disciplinary actions that may include suspension or cancellation of their licenses and prosecution in court.

If, after reviewing the Act, you feel a collector is harassing you:

If you are having problems with collection activity and student loans, try the federal student loans compliance and complaints office at 1-800-667-0135 or the provincial office at (250) 387-6100 or (604) 660-2610.

Finally, under the Business Practices and Consumer Protection Act and regulations, all consumers have the right to take court action for collection harassment issues. BC Small Claims Court can handle claims up to $25,000. For more information on filing a suit and how the small claims process works, please access follow this link.

More Information for British Columbia Debtors

The information is just an overview of your rights as a debtor. To get more information about consumer protection, contact the Business Practices and Consumer Protection Authority:

P. O. Box 9244
Victoria, BC V8W 9J2
Telephone: (604) 320-1667
Fax: (250) 920-7181
Toll Free: 1-888-564-9963
Email: infor@bpcpa.ca

Secured Creditor Rights - British Columbia

If you have purchased personal assets in B.C, and have agreed to pay for those assets over time (loan or true-lease), then you have certain rights. Your secured creditor has certain rights as well and it is good to know what you and your creditor can or can't do.

Default - So you have defaulted on your payments, now what?

Seize or Sue:

In British Columbia under the Personal Property Security Act, a secured creditor, in regard to consumer goods, can either seize the goods (ie car) or sue for the goods, but not do both. For example, a secured creditor holding security over a car that is used for personal use "and not for business' can on default either seize that vehicle and sell it to satisfy the outstanding debt or sue the person for what is owed, but cannot do both. This is very important for personal debtors who find that they have entered into a car loan that they can no longer afford or that the debt on the vehicle is significantly higher than the value of the vehicle. So, if the vehicle is seized by the creditor and they sell it for less than the value of the debt, they cannot proceed against you for the shortfall. (Unfortunately, this does not apply in all provinces and you should talk directly to a Trustee in bankruptcy in your local area to see what your individual rights would be in your province.)

Exceptions to the rule.

In B.C. for example, the Better Business Bureau warns that closed leases- (or a true lease where the assets does not transfer at the end of the lease)-where there is no buyback option, the seize or sue law does not apply.

For example, if you lease a car for 24 months, with no intention of buying it, you are obligated for the total amount of the payments, whether the car is seized or not.

However, if you lease that car with a buyback option, and the car gets repossessed for non-payment, then the seize or sue law applies.

What can happen if you have trouble paying a lease?

A dealer may be able to take the car back and still sue you for all remaining lease payments if you have trouble paying a lease. To avoid this, you can try to negotiate with the dealer--before you sign the lease--to ensure the lease does not cancel the parts of the law that protect consumers, known as "seize or sue provisions." Your rights and responsibilities depend on whether you sign a lease or a security agreement. You can talk to a lawyer before you enter into the lease to find out what type of agreement you are signing.

Please Note *** Personal Debt Solutions Canada strongly recommends that you contact a trustee in bankruptcy in your province to review your situation. The Trustee will examine your circumstances and be able to determine which assets would be exempt if you were to file for bankruptcy. Knowing what you can keep if you go bankrupt in Canada is as important as knowing what you may lose if you go bankrupt in Canada.

For details on what you can keep if you go bankrupt in British Columba and the rules for bankruptcy exemptions in British Columbia, please consult a trustee in your area.