BANKRUPTCY EXEMPTIONS IN ALBERTA & THE TERRITORIES

A LICENSED INSOLVENCY TRUSTEE EXPLAINS

Bankruptcy exemptions are a topic that not many people are familiar with. Many people assume that once you file for bankruptcy, you lose everything. The law protects specific property and assets from the bankruptcy process. These “bankruptcy exemptions” are intended to provide you with reasonable living expenses, support your family, allow you to work, and rebuild your financial position.

Bankruptcy Exemptions Vary by Province & Territory

The Bankruptcy and Insolvency Act sets the rules throughout Canada, but provincial and territorial legislation regulates bankruptcy exemptions. That means that each province and territory – Alberta, Northwest Territories and Nunavut included – has its own bankruptcy exemption rules that outline which assets are exempt from seizure and how much equity you can retain. Below is an overview prepared by our Licensed Insolvency Trustee to explain the general bankruptcy exemptions in Alberta, Northwest Territories and Nunavut.

Bankruptcy Exemptions in Alberta

In Alberta, the regulations of the Civil Enforcement Act set out what property is exempt from seizure in bankruptcy, including the following:

A 12-month supply of food for you and your family
Necessary clothing for you and your family up to $4,000
Household furnishings and appliances up to $4,000
One motor vehicle up to $5,000
Equity in your principal residence up to $40,000 (reduced to your percentage of ownership if you are a co-owner of the residence, which can include a mobile home)
Personal property required to earn a living (books, tools of your trade, equipment) up to $10,000
If you are a farmer, up to 160 acres of farmland are exempt if your principal residence is located on that farmland
If you are a farmer, any personal property and necessary equipment for your farming operations over the next 12 months are exempt
Certain pensions and life insurance policies
All medical devices and dental aids

Bankruptcy Exemptions in Nunavut

In Nunavut, the following property is exempt from seizure in bankruptcy:

12-month supply of food and fuel for you and your family
All clothes for you and your family
All household furniture and appliances
All hunting tools
All tools of the trade
Your vehicle (no limit)
Equity in your principal residence up to $35,000
All medical devices and dental aids
Certain pensions and life insurance policies

Bankruptcy Exemptions in Northwest Territories (NWT)

Bankruptcy exemption regulations to Northwest Territories’ Exemptions Act set out what property is exempt from seizure in bankruptcy, including the following:

A 12-month supply of food and fuel
All necessary and ordinary clothing for you and your family
Household furniture and appliances up to $5,000
One motor vehicle up to $6,000
Hunting tools up to $15,000
Equity in your principal residence up to $50,000
Tools of your trade up to $12,000
Certain pensions and life insurance policies
All medical devices and dental aids

CONSIDERING A PERSONAL BANKRUPTCY?
A Licensed Insolvency Trustee is Here to Help You

While it is generally true that bankruptcy exemptions are similar across Alberta, Northwest Territories, and Nunavut, some differences depend on the province or territory you live in and the amounts that are exempt in a bankruptcy change from time to time. It is in your best interest to contact Fox-Miles & Associates Licensed Insolvency Trustee to review your situation. If you think it may be time for personal bankruptcy or want to know more about your options, we are here to help To schedule your free consultation, call us today at 780-444-3939.