Most provinces offer exemptions that allow you to keep some of your home’s equity if you file for bankruptcy. Leased or financed vehicles are not included in your bankruptcy unless there is sufficient equity value over the loan amount. Bankruptcy exemptions in Ontario covers one vehicle up to $7,117 and homes with equity not exceeding $10,783. However,  if you’ve previously paid off a considerable chunk of your mortgage and you’ve built up equity in your house, bankruptcy law states that you must utilise that equity to pay off some of your debts to your creditors. Talk to your Licensed Insolvency Trustee about your alternatives if you have numerous vehicles or other assets that you want to keep. Work with our insolvency experts at Lazard and Associates to determine which options are best for you. Bankruptcy is the last option we will recommend to our clients.