Canadian Bankruptcy Exemptions. Assets you keep in a Canadian Bankruptcy. (These exemptions also apply to people who are not in bankruptcy or have not filed a proposal.)


One of the major tenets of Canadian bankruptcy law is that a person, overwhelmed by debt, deserves the opportunity of a fresh financial start. Part of that fresh start includes leaving the person with enough possessions to maintain dignity and to help that person towards his or her fresh start. The property exempt form seizure, in a bankruptcy, is set by the provinces and territories.

Bankruptcy exemptions refer to the equity in the property that is exempt from seizure in a bankruptcy or any other seizure situation.

For example, if you have a car worth $10,000 and there is a $6,000 secured debt against it then the equity in the car is $4,000. If the exemption for a car is $5,000, you would be eligible to keep the $4,000 car because the equity of $4,000 is below the exemption level for equity of $5,000.

Nunavut Bankruptcy Exemptions

Nunavut

Household goods - unlimited; Clothing - unlimited; Food - 12 months; Tools of Trade - unlimited; Hunting Tools - unlimited; Residence - $35,000; Vehicle - unlimited; Medical Aids - unlimited.

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 for RRSPs in provinces without RRSP exemption laws (BC, Alberta, Ontario, NB, and NS);

  • There will be no upper cap on the amount of RRSPs that can be protected;

  • There will be no need to set up the RRSPs in a locked in plan to make them eligible for exemption;

  • The court will have no jurisdiction to extend the one year claw back period period in an appropriate case.

NWT Bankruptcy Exemptions

NWT Flag

Household goods - $5,000; Clothing - unlimited; Food - 12 months; Tools of Trade - $12,000; Hunting Tools - $15,000; Residence - $50,000; Vehicle - $6,000; Medical Aids - unlimited.

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 for RRSPs in provinces without RRSP exemption laws (BC, Alberta, Ontario, NB, and NS);

  • There will be no upper cap on the amount of RRSPs that can be protected;

  • There will be no need to set up the RRSPs in a locked in plan to make them eligible for exemption;

  • The court will have no jurisdiction to extend the one year claw back period period in an appropriate case.


Yukon Bankruptcy Exemptions

Yukon Flag

Exemptions Act

Personal Property:

Paragraph 2(1)(a) and subsection 2(2) provide an exemption for household furniture, utensils and equipment that are contained in and form part of the debtor's permanent home.

Paragraph 2(1)(b); necessary and ordinary clothing of the debtor and the family of the debtor;

Paragraph 2(1)(c); food, fuel and other necessaries of life required by the debtor and the family of the debtor for the next 12 months;

Paragraph 2(1)(d) provides an exemption for tools, implements and other chattels necessary to, and actually used by the debtor in his business, profession or calling (not exceeding $600.00).

House, buildings and lot:

Paragraph 2(1)(e) provides an exemption for the house and buildings occupied by the debtor and the lot on which they are situated (not exceeding $3,000.00).

RRSP's associated with life insurance policies are exempt from seizure or attachment.

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 for RRSPs in provinces without RRSP exemption laws (BC, Alberta, Ontario, NB, and NS);

  • There will be no upper cap on the amount of RRSPs that can be protected;

  • There will be no need to set up the RRSPs in a locked in plan to make them eligible for exemption;

  • The court will have no jurisdiction to extend the one year claw back period period in an appropriate case.

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