Motor vehicle in bankruptcy

You will be entitled to keep your motor vehicle if (at the date of bankruptcy) it is worth less than $9,100. If your motor vehicle is worth more than $9,100 your Trustee in Bankruptcy would be entitled to sell the motor vehicle, however, the Trustee would need to provide you with the protected amount ($9,100) from the sale proceeds.

If your motor vehicle is assessed to be worth more than the protected amount ($9,100) then it would be best to try and reach agreement with your Trustee in Bankruptcy to pay the amount which exceeds the protected value. A bankrupt cannot own assets so your spouse or a family member would need to purchase the vehicle from the Trustee in Bankruptcy and pay the excess amount over the protected value. For example if you became bankrupt and your motor vehicle was assessed to be worth $10,000, then your spouse or a member of the family could offer to buy the vehicle from the Trustee in Bankruptcy for approximately $900 ($10,000 – $9,100).

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