What happens to a vehicle that is worth more than the provincial exemption?

Posted on Tuesday, May 27, 2008

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I have one real big queistion. I have heard that if you have a vehilce that is is in my name, is paid in full and is worth more than the $5k allowed in Alberta, Do I have to pay difference between the value and the allowable amount to keep my care. Does this happen in both a bankruptcy and a proposal?

Filed under: Bankruptcy
 posted by Questions @ 10:40 pm
1 Expert Comment:

 At June 2, 2008 | 7:09 am , Barton Goth GCO Bankruptcy Trustees Said...

You are right. In Alberta you are permitted to have a vehicle of up to $5000 equity in it (value less any loans registered against). IF you have more than this there are 2 options.

First option is you could sell the vehicle, the first $5000 would be yours and anything on top of that would need to be turned over to your trustee.

The second option is that you could buy back any equity over the $5000 amount from the bankruptcy estate.

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