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 family’s essential needs.
- Other exempt property defined by the province or territory in which you live.
You can keep some of your possessions when you file for bankruptcy. These assets are called bankruptcy exemptions because they are exempt from seizure. The list below outlines the exemptions by each province. A Licensed Insolvency Trustee has up-to-date information on exemptions for every province and can advise you on how these apply to your situation.
Contact us if you have questions regarding your assets.
Newfoundland & Labrador Bankruptcy Exemptions
In Newfoundland and Labrador, bankruptcy exemptions are set by the provincial government and applies to the equity in an asset. The Equity is the difference between the value of the asset and what you owe on the asset.
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$4000 |
|
Motor Vehicle |
$2000 |
|
Food |
Amount required to feed debtor and dependents for 12 months |
|
Clothing |
$4000 |
|
Tools of Trade |
$10,000 |
|
Medical Aids |
No limit on medical aids required for debtor or dependents |
|
Registered Retirement Savings Plans: RRSP & RDSP’s |
Exempt |
Farming, Fishing / Land Exemptions:
|
Primary Occupation is Fishing, Farming or Aquaculture |
Exempt up to $10,000 |
Nova Scotia Bankruptcy Exemptions
In Nova Scotia, the Judicature Act of Nova Scotia, the Personal Property Security Act of Nova Scotia and the Insurance Act of Nova Scotia all contain exempt asset rules.
The following assets are protected or exempt assets in Nova Scotia. They are protected against the liquidation by creditors to satisfy unpaid debts: (unless a creditor holds a purchase money security interest).
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$5,000 |
|
Motor Vehicle |
$3,000 in one vehicle, or $6,500 if needed for employment |
|
Food |
No limit on necessary items |
|
Clothing |
No limit on necessary items |
|
Tools of Trade |
$7,500 |
|
Medical Aids |
No limit on medical aids required for debtor or dependents |
|
Pension plans, RRSP’s, RDSP’s, RRIF’s and Deferred profit sharing plans. |
Exempt – However, there is a claw back period of any contributions made to RRSP in the 12 months prior to bankruptcy |
Exceptions to the Exemption(s)
|
Assets or Chattels used in debtor’s chief occupation |
Exempt status does not apply to assets or chattel subject to a purchase money security interest (PMSI). A PMSI is when a loan is given to facilitate the purchase of a specific asset, exempt or not. |
New Brunswick Bankruptcy Exemptions
The following assets are protected or exempt assets in New Brunswick. They are protected against the liquidation by creditors to satisfy unpaid debts: (unless a creditor holds a purchase money security interest)
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$5,000 |
|
Motor Vehicle |
$6,500 needed for employment or medical reasons |
|
Food & Fuel |
3 month supply of food & fuel for you and dependents |
|
Clothing |
No limit on necessary items |
|
Tools of Trade |
$6,500 |
|
Medical Aids |
No limit on necessary medical aids required for debtor or dependents |
|
Certain Pension plans, RRSP’s, RDSP’s and RRIF’s |
Exempt – However, there is a claw back period of any contributions made to RRSP in the 12 months prior to bankruptcy |
Exceptions to the Exemption(s):
|
Assets or Chattels used in debtor’s chief occupation |
Exempt status does not apply to assets or chattel subject to a purchase money security interest (PMSI). A PMSI is when a loan is given to facilitate the purchase of a specific asset, exempt or not. |
Farming, Fishing / Land Exemptions:
|
Farm Property
|
Farm Planting 10 bushels of barley 10 bushels of buckwheat 10 bushels of wheat 35 barrels of potatoes
|
Prince Edward Island Bankruptcy Exemptions
The following assets are protected or exempt assets in Prince Edward Island. They are protected against the liquidation by creditors to satisfy unpaid debts (unless a creditor holds a purchase money security interest):
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$2,000 |
|
Motor Vehicle |
$3,000 on motor vehicle, or $6,500 if needed for employment |
|
Food |
No limit on necessary items |
|
Clothing |
No limit on necessary items |
|
Tools of Trade |
$2,000 |
|
Medical Aids |
No limit on necessary medical aids required for debtor or dependents |
|
Pension plans, RRSP’s, RDSP’s, and RRIF’s |
Exempt – However, RRSP’s have a condition they have a defined beneficiary as defined by provincial legislation. |
Exceptions to the Exemption(s)
|
Assets or Chattels used in debtor’s chief occupation |
Exempt status does not apply to assets or chattel subject to a purchase money security interest (PMSI). A PMSI is when a loan is given to facilitate the purchase of a specific asset, exempt or not. |
|
Spouse, former spouse, or child |
Provincial exemptions do not apply against spouse or child with respect to maintenance orders, except in the case of tools of trade |
Farming, Fishing / Land Exemptions:
|
Farming Equipment & Property
|
Farmers are allowed the necessary seed to cultivate land under his control, not exceeding 100 acres |
Quebec Bankruptcy Exemptions
In Quebec, property exempt from seizure in bankruptcy is set by the provincial government and applies to the equity in an asset.
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$6,000 |
|
Motor Vehicle |
Allowed 1 vehicle required for work |
|
Food |
No limit on necessary items |
|
Clothing |
No limit on necessary items |
|
Tools of Trade |
Tools required for debtors work |
|
Medical Aids |
No limit on necessary medical aids required for debtor or dependents |
|
RRSP’s, RDSP’s |
Exempt – However, there is a claw back period of any contributions made to RRSP in the 12 months prior to bankruptcy |
Ontario Bankruptcy Exemptions
In Ontario, the Execution Act sets out what assets are protected against the liquidation by creditors to satisfy unpaid debt (unless a creditor holds a purchase money security interest).
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$14,180 |
|
Motor Vehicle |
$7,117 |
|
Food |
No limit on necessary items |
|
Clothing |
No limit on necessary items |
|
Tools of Trade |
$14,405 |
|
Medical Aids |
No limit on necessary medical aids required for debtor or dependents |
|
Pension plans, RRSP’s, RRIF’s, and RDSP’s |
Exempt – However, RRSP’s have a condition they have a defined beneficiary as defined by provincial legislation. |
|
Equity in Home (Primary Residence) |
$10,783, if a debtor’s equity in the house is less than $10,783. |
Farming, Fishing / Land Exemptions:
|
(Farming Only) Tools and Livestock
|
31,379 for livestock, fowl, bees, books, tools and implements of the trade |
Manitoba Bankruptcy Exemptions
In Manitoba, property exempt from seizure in bankruptcy is set by the provincial government and applies to the equity in an asset.
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$4,500 |
|
Motor Vehicle |
$3,000 |
|
Food |
No limit on necessary items for 6 months |
|
Clothing |
No limit on necessary items |
|
Articles and furniture necessary for Religious Services |
Exempt |
|
Tools of Trade |
$7,500 |
|
Medical Aids |
No limit on necessary medical aids required for debtor or dependents |
|
Equity in Home (Primary Residence) |
$2,500 if you are the sole owner |
Farming, Fishing / Land Exemptions:
|
Farming Equipment & Property
|
– All Farm equipment and animals needed for the next 12 months – One motor vehicle if required for you agricultural operations – Sufficient Seed to seed all land under cultivation – Up to 160 acres of farmland – Any house, stable, barn and fences on your farm (up to 160 acres) |
Saskatchewan Bankruptcy Exemptions
In Saskatchewan, property exempt from seizure in bankruptcy is set by the provincial government and applies to the equity in an asset.
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
Exempt – All necessary household furniture & appliances |
|
Motor Vehicle |
$10,000 |
|
Food |
No limit on necessary items for 6 months |
|
Clothing & jewelry |
$7,500 |
|
RRSP, RDSP, RRIF’s, certain pensions (DPSP) and life insurance policies |
Exempt with some restrictions. |
|
Tools of Trade |
All Tools required for debtors work |
|
Medical Aids |
No limit on necessary medical aids required for debtor or dependents |
|
Equity in Home (Primary Residence) |
$50,000 |
Farming, Fishing / Land Exemptions:
|
Farming Equipment & Property
|
– Enough cash or crops to provide food & fuel to farmer until next harvest period. – All Livestock & arm machinery , including car or truck, for up to 12 months of operation. – Two bushels of seed per acre of land – Tools of Trade necessary for farming up to $20,000 |
Alberta Bankruptcy Exemptions
In Alberta, the Civil Enforcement Act sets out what assets are protected against the liquidation by creditors to satisfy unpaid debt (unless a creditor holds a purchase money security interest).
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$4,000 |
|
Motor Vehicle |
$5,000 |
|
Food & Fuel |
Amount required to feed debtor and dependents for 12 months |
|
Clothing |
Up to $4000 |
|
Tools of Trade |
$10,000 |
|
Medical Aids |
Medical aids required for debtor or dependents |
|
RRSPs, RIFs, RESPs, RDSP’s and certain life insurance policies |
Exempt (with some restrictions). |
|
Equity in Primary Residence |
$40 000 for the property but subject to conditions. Contact your LIT for more information |
Farming, Fishing / Land Exemptions:
|
(Farmer’s Only) Land |
160 acres of land; if principal residence is located on that land and is part of your farming operation |
|
(Farmer’s Only) Personal Property |
Any property that is required in order to sustain up to 12 months of farming operations |
British Columbia Bankruptcy Exemptions
In British Columbia, the Court Order Enforcement Act and Insurance Act both set out what assets are protected against the liquidation by creditors to satisfy unpaid debt (unless a creditor holds a purchase money security interest).
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$4000 |
|
Motor Vehicle |
$5000, unless debtor owes for family or child support payments, in which case their exemption is reduced to $2,000 |
|
Food |
No limit on necessary items for debtor and dependents. |
|
Clothing |
No limit on necessary items for debtor and dependents. |
|
Tools of Trade |
$10,000 (Cannot be applied to a work vehicle) |
|
Medical & Dental Aids |
Medical aids required for debtor or dependents |
|
RRSPs and RDSPs |
Exempt, except for RRSP contributions made in 12 months before bankruptcy |
|
Equity in Primary Residence |
$12,000 if located in Capital Region or Metro Vancouver Region District (see below) |
** Capital Region or Metro Vancouver Regional District includes: **
Vancouver, Surrey, Burnaby, Richmond, Coquitlam, Langley, Delta, North Vancouver, Maple Ridge, New Westminster, Port Coquitlam, West Vancouver, Port Moody, Langley, White Rock, Pitt Meadows, Bowen Island, Anmore, Lions Bay, Tsawwassen, Belcarra, Saanich, Central Saanich, North Saanich, Victoria, Langford, Oak Bay, Esquimalt, Colwood, Sooke, Sidney, View Royal, Metchosin, Salt Spring Island, Juan De Fuca, Southern Gulf Islands
Yukon Bankruptcy Exemptions
In the Yukon, property exempt from seizure in a bankruptcy is set by the territorial government and applies to the equity in an asset.
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Furniture, Household Appliances |
Up to $200 |
|
Equity in Home (primary residence) |
$3,000 |
|
Food |
No limit on necessary items for 12 months |
|
Clothing |
No limit on necessary items for debtor and dependents |
|
Tools of Trade – Livestock, fowl, bees, books used for business |
$600 |
North West Territories Bankruptcy Exemptions
In the NWT, property exempt from seizure in bankruptcy is set out in the Exemptions Act and applies to the equity in an asset.
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Unsecured Furniture, Household Appliances |
$5,000 |
|
Motor Vehicle |
$6,000 |
|
Food & Fuel |
No limit on necessary items for 12 months |
|
Clothing |
No limit on necessary clothing |
|
Hunting Tools |
$15,000 |
|
Tools of Trade |
$12,000 |
|
Equity in Home (Primary Residence) |
$50,000 |
Nunavut Bankruptcy Exemptions
In Nunavut, property exempt from seizure in a bankruptcy is set by the territorial government and applies to the equity in an asset.
|
Category |
Maximum Amount of Exemption (Realizable value) |
|
Furniture, Household Appliances |
No limit |
|
Medical & Dental Aids |
No limit |
|
Food & Fuel |
No limit on necessary items for 12 months |
|
Clothing |
No limit on necessary clothing |
|
Hunting Tools / Tools of Trade |
No limit |
|
Certain Pensions & Life insurance policies |
Most Exempt. |
|
Equity in Home (Primary Residence) |
$35,000 |
