A bankrupt is allowed to keep vehicles used for personal transport with an aggregate net equity up to $6000 or $12 000 if the vehicle is jointly owned by two bankrupts. These amounts are indexed.

Where the equity is more the trustee will sell the vehicle. In certain circumstances the equity over $6000 (or $12 000 for jointly owned vehicles) may be sold by the trustee to a relative or friend of the bankrupt. If a vehicle is sold the first $6000 (or $12 000 for jointly owned vehicles) of the proceeds of that sale will be paid to the bankrupt enabling him or her to buy and keep a cheaper car.

Of course, if the vehicle is security for a finance contract and the bankrupt does not keep up the payments, the finance company may still seize the vehicle.