canada bankruptcy exemptions

 

 

British Columbia (BC) - Court Order Enforcement Act/Insurance Act

Registered Savings Plans & Life Insurance	RRSP - Exempt - except for contributions made in last 12 months RDSP - Exempt RESP - Not Exempt Life Insurance - Exempt If beneficiary is spouse, child, grandchild, parent
Home	$12,000 in capital region** $9,000 everywhere else
Clothing & Personal Effects	Exempt - No limits for you or for your dependents.
Household furnishings and appliances	$4,000 (Based on reasonable amount that could be obtained by sale of items).
Vehicle	$5,000 (reduced to $2,000 if they owe maintenance)
Tools of Trade	$10,000 - Cannot be applied to a work vehicle

**capital region – 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 Saaanich, Victoria, Langford, Oak Bay, Esquimalt, Colwood, Sooke, Sidney, View Royal, Metchosin, Salt Spring Island, Juan De Fuca, Southern Gulf Islands

Alberta (AB) - Civil Enforcement Act/Insurance Act

Registered Savings Plans & Life Insurance	RRSP - Exempt RDSP - Exempt RESP - Exempt Life Insurance: Spouse, child, grandchild, parent
Pensions	Exempt
Home	$40,000 in equity in Principle Residence
Clothing & Personal Effects	$4,000
Household furnishings and appliances	$4,000 (Based on reasonable amount that could be obtained by sale of items).
Vehicle	$5,000
Tools of Trade	$10,000

 

Saskatchewan (SK) - The Enforcement of Money Judgments Act/The Saskatchewan Insurance Act

Registered Savings Plans	RRSP - Exempt  RDSP - Exempt RESP - Not Exempt Life Insurance - Exempt if beneficiary is spouse, child, grandchild and parent.
Home	$50,000 in equity - principle residence
Clothing & Personal Effects	$7,500
Pets	$2,000
Household Furnishings & Appliances	Exempt
Vehicle	$10,000
Tools of Trade	Exempt (cannot be applied to a motor vehicle)

 

Manitoba (MB) - Execution Act/Insurance Act

Registered Savings Plans & Life Insurance	RRSP/Any Registered Plan under Federal ITA -All (Registered Retirement Savings Protection Act) RDSP - Exempt, except contributions made in last 12 months RESP- Not Exempt Life Insurance - Exempt if beneficiary is spouse, child, grandchild and parent. *If person to whom exemptions apply dies the exemptions apply if the property is handed to a dependent" should be in the Manitoba
Home	$2,500 if equity in house (Sole Ownership) $1,500 per person if equity in house (Co-owned/Joint Ownership) (Manitoba Judgements Act)
Clothing	Exempt - Necessary clothing and clothing of exempt debtor dependents
Food & Fuel/Cash Equivalent for 6 Months	Exempt
Household Furnishings & Appliances	$4,500
Vehicle	$3,000
Tools of Trade	Tools of trade In the case of a farmer all farm machinery, dairy utensils and farm equipment for the next required to operate for the next 12 months, 1 vehicle, animals, seeds, house stables, barns on up to 160 Acres of land. Any other                                                         All       $7,500

Ontario (ON) - Execution Act/Insurance Act

Registered Savings Plans & Life Insurance	RRSP/RRIF/LIRA - Exempt - Contributions made in last 12 months are not exempt. RDSP - Exempt - Contributions made in last 12 months are not exempt. RESP - Not Exempt Life Insurance - Exempt if beneficiary is spouse, child, grandchild and parent.
Pensions	Exempt (Ontario Pensions Benefits Act)
Home	$10,783 if equity in the house is less than $10,783. None if equity in house more than $10,783.
Clothing	Exempt - Necessary clothing and clothing of exempt debtor dependents
Medical / Dental Aids	Exempt
Household Items	$14,180
Vehicle	$7,117
Tools of Trade	(In the case of a debtor engaged solely in the tillage of the soil or farming, $31,379 for livestock, fowl, bees, books, tools, and implements and other chattels ordinarily used by the debtor in the debtor’s occupation) Any other                                                     $31,379     $14,405

 

Quebec (QC) - Asset Exemptions In Bankruptcy

Registered Savings Plans - Example: RRSP's, RRIF's	Exempt, except for contributions in the 12 months before the date of bankruptcy.
Pensions	Certain Types - Exempt - Contact us for details.
Home	$10,000
Clothing	Exempt
Medical / Dental Aids	Exempt
Household Items	$6,000
Vehicle	Exempt
Work Tools	Exempt
Farmers	Exempt

 

 

New Brunswick (NB) - Asset Exemptions In Bankruptcy

Register Savings Plans - Example: RRSP's RRIF's	RRSP - Exempt - Contributions made in last 12 months are not exempt. RDSP - Exempt RESP - Not Exempt Life Insurance - Exempt if beneficiary is spouse, child, grandchild and parent.
Pensions	Exempt - Contact us for details.
Home	Not Exempt
Clothing	Exempt
Medical / Health Aids	Exempt
Household Items	$5,000
Vehicle	$6,500, if required for work
Work Tools	$6,500
Farmers	Animals, equipment seed up to certain limits - Contact us for details.

 

 

Prince Edward Island (PE) - Asset Exemptions In Bankruptcy

Register Savings Plans - Example: RRSP's RRIF's	Exempt
Pensions	Certain Types - Exempt - Contact us for details.
Home	Not Exempt
Clothing	Exempt
Medical / Dental Aids	Exempt
Household Items	$5,000
Vehicle	$6,500 if used for work transportation. $3,000 if not used for work.
Work Tools	$2,000
Farming / Fishing	Personal property used to earn income up to $5,000

 

 

Nova Scotia (NS) - Asset Exemptions In Bankruptcy

Register Savings Plans - Example: RRSP's RRIF's	Exempt
Pensions	Certain Types - Exempt - Contact us for details.
Home	Not Exempt
Clothing	Exempt
Medical / Dental Aids	Exempt
Household Items	$5,000
Vehicle	$6,500
Work Tools	$7,500
Farmers	No limit on grain and seeds or livestock for domestic use by you and your family.

 

 

Newfoundland & Labrador (NL) - Asset Exemptions In Bankruptcy

Register Savings Plans - Example: RRSP's RRIF's	Exempt
Pensions	Certain Types - Exempt - Contact us for details.
Home	$10,000
Food & Clothing	Food and fuel required by you and your dependents for 12 months. Clothing for you and your dependents: $4,000
Medical / Dental Aids	Exempt
Household Items	$4,000
Vehicle	$2,000
Work Tools	$6,500
Farming / Fishing	Personal property used to earn income up to $10,000

 

 

Nunavut (NU) - Asset Exemptions In Bankruptcy

Register Savings Plans - Example: RRSP's RRIF's	Exempt
Pensions	Certain Types - Exempt - Contact us for details.
Home	$35,000
Clothing & Food	Clothing: Exempt. Enough food & fuel for 12 months.
Medical / Dental Aids	Exempt
Household Items	Exempt
Vehicle	Exempt
Work Tools	Exempt
Farming / Fishing	Exempt

 

 

Northwest Territories (NWT) - Asset Exemptions In Bankruptcy

Register Savings Plans - Example: RRSP's RRIF's	Exempt
Pensions	Certain Types - Exempt - Contact us for details.
Home	$50,000
Clothing & Food	Clothing: Exempt. Enough food and fuel for 12 months.
Medical / Dental Aids	Exempt
Household Items	$5,000
Vehicle	$6,000
Work Tools	$12,000
Hunting Tools	$15,000

 

 

Yukon (YU) - Asset Exemptions In Bankruptcy

Register Savings Plans - Example: RRSP's RRIF's	Exempt
Pensions	Certain Types - Exempt - Contact us for details.
Home	$3,000
Clothing & Food.	Clothing: Exempt.  Food, fuel, and other necessities of life for your family for 12 months
Medical / Dental Aids	Exempt
Household Items	Up to $200
Vehicle	Not Exempt
Work Tools including livestock	$600

 

 

Federal Exemptions (Does not Constitute Property of the Bankrupt) – BIA/ ITA/Insurance Act

Property held by the bankrupt in trust for any other person (must be a legally defined trust)	All
Quarterly GST/HST Tax credit payments	Exempt (Unless there is no dividend to creditors)
Deferred Profit Sharing Plans (Registered)	Exempt except last 12 months of contributions (BIA Rule 59.2 – ITA S147(1)
RRSP	All, except for contributions in last 12 months
RDSP	All, except for contributions in last 12 months
Pension Plans	All, except for contributions in last 12 months
Life insurance	If beneficiary is Spouse, child, grandparent, parent

 

 

What Happens to My Earnings During Bankruptcy?  Surplus Income Defined.

No matter where you reside in Canada, the distribution of your earnings during bankruptcy is governed by the Federal Government Office of the Superintendent of Bankruptcy, and is determined by what is called Surplus Income.  Simply put, your income is compared to an amount called the Surplus Income Threshold, which sets the amount of take home income a person or a family needs for a reasonable standard of living, based on their family size and family situation. You get to keep everything up to this threshold amount.  For any income above the threshold, you are required to submit 50% of this excess income for the duration of your bankruptcy.

Surplus income will also determine the length of your bankruptcy. If a person has no surplus income and this is a first time bankruptcy, the federal government has regulated that a bankruptcy will be for a period of 9 months. If there is surplus income and it is greater than $200 over the threshold, a first time bankruptcy will be extended 12 months, for a total of 21 months.  A second bankruptcy with surplus income will be extended by 27 months, for a total of 36 months.

Surplus Income Threshold for 2019:

Family Size: 1	$2,203
2	$2,743
3	$3,372
4	$4,094
5	$4,644
6	$5,237
7	$5,831

The monthly surplus income payment is calculated using the following formula:

Net Income after Deductions – Federal Threshold Amount = Surplus Income x 50% = Payment

Example: Jill lives by herself and takes a salary of $2,504 home per month. Here Surplus Income payment, using the formula above, would be: $2,503 (Take home income) – $2,203 (Threshold amount, based on a family size of one person) = $300 x .5 (Surplus income payment is based on 50% of any income over the threshold amount = $150 Therefore, Jill would be required to pay $150 every month in surplus income payments for the duration of her bankruptcy. If her income increases, she will be required to pay more, and if her income decreases, the amount she pays will be less.

Net Income is based on the total take home income of all family members living in the household of the bankrupt.

Deductions include: Child care payments, support payments, medical payments, and other employment expense that are normally deducted when preparing your income taxes.