Bankruptcy Exemptions in Canada

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Bankruptcy Exemptions in Canada

What kinds of assets are exempt in a bankruptcy in Canada?

In Canada, the federal Bankruptcy and Insolvency Act defines three kinds of exemptions:

Property you hold in trust for other persons.

GST credit payments and prescribed payments relating to your familys essential needs.

Other exempt property defined by the province or territory where you live.

Exemption Extremes

Furniture Nunavut $200

Sask. farm $10,000

Car Yukon $600

Quebec No set limit

Health aids Ontario None

Nova Scotia No set limit

Your likely exemptions?

Personal evaluation

The provinces and territories generally define other exempt property to include the following, up to

limited values, which vary greatly from province to province:

Food and heating fuel needed by you and your dependants.

Clothing needed by you and your dependants.

Household furnishings and appliances.

One motor vehicle (sometimes only if needed to earn your living).

Health (medical, dental, etc.) aids needed by you and your dependants.

The tools of your trade: tools, equipment, and books needed to earn money from your non-

farming occupation.

Farm property: Farmland where your principal residence is located, and required operating

equipment, livestock, and other property.

Your principal residence (house or mobile home).

Some land.



Sentimental items, including pets.

Pensions or retirement savings.

Miscellaneous categories in some provinces.

The tools and farm exemptions cannot both be taken; they apply only to your principal occupation.

Exemptions by province and territory

CAUTIONS:

The exemption lists we provide below are simplified summaries of the law.

Even where there is no dollar limit, exemptions are limited to what you and your dependants

really need.

The provinces often adjust the exemptions for various reasons, such as inflation.

For interpretation of the rules in your case, we strongly recommend that you contact a Canada

bankruptcy trustee to review your situation to determine which assets would be exempt if you were to

file for bankruptcy. You should be completely clear on what you can keep if you go bankrupt in

Canada versus what you may lose if you go bankrupt in Canada.

Please choose your province or territory:

Alberta

British Columbia

Manitoba

New Brunswick

Newfoundland & Labrador

Northwest Territories

Nova Scotia

Nunavut

Ontario

Prince Edward Island

Quebec

Saskatchewan

Yukon



Alberta Exempt Property

1. Food: 12 months supply.

2. Clothing: up to $4,000.

3. Household furniture and appliances: up to $4,000

4. One motor vehicle; up to $5,000

5. Health aids: no dollar limit.

6. Tools of your trade: up to $10,000.

7. Farm property: requirements for 12 months operations.

8. Principal residence: up to $40,000, reduced to your share if you are a co-owner.

9. Farm land: up to 160 acres.

10. Social allowance, handicap benefit or a widows pension if the proceeds from the payment are

not intermingled with your other funds.

Statute: Read the Civil Enforcement Act.

For details on what you can keep if you go bankrupt in Alberta and the rules for bankruptcy exemptions

in Alberta, please consult an Alberta bankruptcy trustee.

British Columbia Exempt Property

1. Food and fuel: none.

2. Clothing: no dollar limit.

3. Household goods: up to $4,000

4. One motor vehicle: up to $5,000 (or $2,000 if you behind on child support payments).



7. Farm property: none.

8. Principal residence: up to $9,000 (or $12,000 in Greater Vancouver or Victoria).

Statute: Read the Court Order Enforcement Act and Regulations.

For details on what you can keep if you go bankrupt in British Columbia and the rules for bankruptcy

exemptions in British Columbia, please consult a British Columbia bankruptcy trustee

Manitoba Exempt Property



1. Food and fuel: six months supply or cash equivalent.


3. Household furniture and appliances: up to $4,500

4. One motor vehicle (needed for occupation): non-farmers up to $3,000, farmers no limit.



7. Farm property: buildings and requirements for 12 months operations.

8. Principal residence: farm house; non-farmers up to $2,500, or $1,500 if you are a co-owner.

9. Farm land: up to 160 acres.

10. Items needed for religious services.

11. Locked-in pension plans.

12. Certain life insurance policies.

13. Municipal or school property.

Statutes: Read the Executions Act and the Judgments Act.

For details on what you can keep if you go bankrupt in Manitoba and the rules for bankruptcy

exemptions in Manitoba, please consult a Manitoba bankruptcy trustee.

New Brunswick Exempt Property

1. Food and fuel: three months supply.


3. Household furniture and appliances: up to $5,000 (more in some cases).

4. One motor vehicle (needed for occupation): up to $6,500 (more in some cases).



7. Farm property: farm animals to specified limits, their feed for six months, and seeds to specified

limits.

8. Principal residence: none.

9. Items needed for religious services.

10. Pets.



11. Pension plans.

Statute: Read the Memorials and Executions Act and the Personal Property Security Act.

For details on what you can keep if you go bankrupt in New Brunswick and the rules for bankruptcy

exemptions in New Brunswick, please consult a New Brunswick bankruptcy trustee.

Newfoundland & Labrador Exempt Property

1. Food and fuel: twelve months supply.


3. Household furniture and appliances: specific types, up to $4,000

4. One motor vehicle: up to $2,000

5. Health aids: No dollar limit.


7. Farm or fishing or aquaculture property: up to $10,000.

8. Principal residence: up to $10,000.

9. Pets.

10. Items of sentimental value: up to $500.

11. Certain pension plans.

12. Certain income.

Statute: Read the Judgment Enforcement Act and Regulations and the Personal Property Security Act.

For details on what you can keep if you go bankrupt in Newfoundland & Labrador and the rules

for bankruptcy exemptions in Newfoundland & Labrador, please consult a Newfoundland and Labrador

bankruptcy trustee.

Nova Scotia Exempt Property

1. Food and fuel: no dollar limit.


3. Household goods: up to $6,500, more in some cases.

4. One motor vehicle: up to $3,000, or up to $6,500 if needed in occupation.


6. Tools of any occupation: up to $1,000.



7. Seeds and livestock for domestic use: no dollar limit.


Statute: Read the Judicature Act and Regulations and the Personal Property Security Act.

For details on what you can keep if you go bankrupt in Nova Scotia and the rules for bankruptcy

exemptions in Nova Scotia, please consult a Nova Scotia bankruptcy trustee.

Ontario Exempt Property

1. Food, fuel, household furniture, appliances: up to $11,300.


3. One motor vehicle (needed for occupation): up to $5,650

4. Health aids: none.


6. Farm property: seed for up to 100 acres, feed and bedding for the current winter, 14 bu.

potatoes, other up to $28,300.


8. Most pension plans, life insurance policies, and certain RRSPs.

Statute: Read the Executions Act.

Exemption amounts for Ontario bankruptcy have changed a number of times over the last few years.

We strongly recommend that you contact an Ontario Bankruptcy Trustee to review your personal

situation and determine what you can keep if you file for bankruptcy in Ontario.

Prince Edward Island Exempt Property

1. Food, fuel, household furniture, appliances: up to $2,000.


3. One motor vehicle (needed for occupation): up to $6,500.



6. Farm property: seed for up to 100 acres, other up to $5,000.


8. RRSPs with beneficiary a family member: no dollar limit.



If you are behind on child or spousal support payments, the above exemptions do not apply to any item

but tools of your trade.

Statute: Read the Judgment and Execution Act and the Personal Property Security Act.

Quebec Exempt Property

1. Food and fuel: no dollar limit.


3. Household furniture and appliances: specific types, up to $6,000.

4. Motor vehicle: no dollar limit.

5. Disability aids, accident benefits: no dollar limit.

6. Tools of your trade: no dollar limit.

7. Farm property: no dollar limit.

8. Principal residence: $10,000.

9. Support received through court order, donation, or bequest.

10. Most property declared exempt by a donor or will.

11. A certain portion of your wages and salaries, based on the number of your dependants.

12. Benefits payable and employer contributions under an employer-sponsored pension plan.

13. Family papers and portraits, medals and other decorations, and documents.

14. Items used in religious worship.

15. Income for services as a minister of religion.

16. Food, lodging, and transportation passes received for employment travel.

Statute: Read the Code of Civil Procedure.

For details on what you can keep if you go bankrupt in Quebec and the rules for bankruptcy exemptions

in Quebec, please consult a Quebec bankruptcy trustee.

Saskatchewan Exempt Property

1. Food and fuel: cash equivalent of supply until the next harvest.


3. Household furniture and appliances: up to $4,500 (or $10,000 for a farm).



4. One motor vehicle (needed for occupation): no dollar limit.



7. Farm property: livestock and equipment for up to 12 months, two bushels seed per acre of land

under cultivation, and enough cash or current crop for farming costs to the next harvest.

8. Principal residence: up to $32,000 (your share) and associated land up to 160 acres.

9. All retirement savings plans: RRSPs, RRIFs, and DPSPs.

10. Certain life insurance policies.

Statute: Read the Exemptions Act and the Saskatchewan Farm Security Act.

For details on what you can keep if you go bankrupt in Saskatchewan and the rules for bankruptcy

exemptions in Saskatchewan, please consult a Saskatchewan bankruptcy trustee.

Northwest Territories / Nunavut / Yukon Exempt Property

1. Food and fuel: twelve months supply.


3. Household furniture and appliances: up to $200.


5. Tools and animals of your trade, including motor vehicle: up to $600.

6. Principal residence: up to $3,000.

7. RRSPs associated with insurance policies.

The above exemptions for the territories do not apply if:

You are behind on child or spousal support payments.

You have absconded or are about to abscond from the territories leaving no spouse or family

behind.

Statute: Read the Yukon Exemptions Act, NWT Exemptions Act, Nunavut amendments to Exemptions

Act.

Bankruptcy exemptions reforms

Some people believe that the limits and rules for exemptions are outdated and that the differences

across the country are unfair, and have urged that they be increased and made more uniform. The

2005 bankruptcy reform (which may never be proclaimed as law), would have had a minor effect on

Canadian bankruptcy exemptions, but left most of them unchanged.

Documents

Bankruptcy Exemptions in Canada