Questions answered by our expert: KPMG 2009-01-06 14:47:24 http://koolfm.com/experts/view/all/ 2009 Kool FM Ontario law allows a bankrupt to retain: - Household furniture up to $11,300 -Personal effects up to $5,650 -Tools of the trade up to $11,300 -A vehicle valued up to $5,600 -Certain pensions, life insurance policies and RSPs This will be discussed in detail at your initial consultation. What about my credit rating? Usually, once your level of debt becomes so great that bankruptcy is required, your credit rating is poor in any event. Your ability to obtain and use credit after discharge depends on convincing lenders of your personal financial maturity. Your credit rating can only improve after bankruptcy http://koolfm.com/experts/view/bankruptcy/kpmg/ http://koolfm.com/experts/view/bankruptcy/kpmg/ 2008-02-26 08:00:00 EDT Personal bankruptcy is a legal process designed to relieve an honest debtor of their debt burden. While you are in bankruptcy no creditor can garnishee your wages or initiate any other collection action against you; although you must continue paying secured creditors (e.g. the mortgage on a house, or a car loan) unless you wish that secured creditor to take back the asset. http://koolfm.com/experts/view/bankruptcy/kpmg/ http://koolfm.com/experts/view/bankruptcy/kpmg/ 2008-02-26 08:00:00 EDT The Bankruptcy and Insolvency Act offers an alternative to bankruptcy. You can make a consumer proposal, based on your circumstances, to your creditors. For example, you may ask the creditors to reduce amounts owing to them or request more time to pay the amounts due. Specific terms can be discussed with your Trustee or Administrator. http://koolfm.com/experts/view/bankruptcy/kpmg/ http://koolfm.com/experts/view/bankruptcy/kpmg/ 2008-02-26 08:00:00 EDT