Ontario bankruptcy exemptions received a cost of living increase (reviewed every five years) and go into effect on Wednesday December 14, 2005.
Ontario Bankruptcy Exemptions are:
Clothing $ 5,650.00
Household Goods $11,300.00
Tools of the Trade $11,300.00
Farmers $28,300.00
Motor Vehicle $ 5,650.00
The property exempt from seizure is set by the provinces and territories and applies to the equity in the asset.
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 car worth $5,000 and there is a $2,000 secured debt against it then the equity in the car is $3,000. In Ontario the exemption for a car is $5,650 so in this example you are entitled to the equity of $3,000 and the unsecured creditors cannot take this.
Could you please let me know what site you are referencing for the exemptions as the Ontario Execution Act states vehicle worth $5,000 and clothing at $5,000.
Thank you
Kim: A regulation was made under the Execution Act (Ontario) to increase the value of the goods exempt from seizure as set out in sections 2 and 3 of that Act. The increase accounts for inflation since the old values were set in 2000 (in force April 2001), as contemplated by s. 35 of the Act (every 5 years). The increase in the exemptions came into force on Wednesday December 14, 2005. The values are:
item 1 – clothes $ 5, 650.
item 2 – household goods $ 11,300
item 3 – tools of the trade $ 11, 300
item 4 – farmer’s tools $ 28, 300
item 6 – car $ 5, 650
If you require further confirmation get an up to date copy of the Regulations under the Ontario Execution Act.