British Columbia, BC Bankruptcy Exemptions

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(Assets you keep in a Bankruptcy)

These exemptions are applicable to all seizures not just in a bankruptcy or proposal context.

Bankruptcy Exemptions for other provinces and territories can be found here.

Equity is the excess that the value of an asset has over any charges or encumbrances against that asset.

For example, if you have a home worth $400,000 and there is a $392,000 secured debt against it (Mortgage, Real Estate Commission and property taxes) then the equity in the home is $8,000. In BC the exemption for a home in Greater Vancouver and Victoria = $12,000. In the rest of the province = $ 9,000 so in this example you are entitled to the equity of $8,000 and the unsecured creditors cannot take this.

BC Bankruptcy Exemptions are:

Equity in a home in Greater Vancouver and Victoria = $12,000. In the rest of the province = $9,000;
Equity in Household items = $4,000;
Equity in a vehicle = $5,000; The vehicle exemption drops to $2,000 if the debtor is behind on child care payments (to facilitate the enforcement of Maintenance Orders)
Equity in work tools = $10,000;
Exemptions are in effect for all registered retirement savings plans (RRSP's, RRIF's and DPSP's (Deferred Profit Sharing Plans).

Contributions made in the 12 months prior to the date of bankruptcy will be recovered (clawed back) for the benefit of the bankruptcy estate.