Which Assets Stay Protected in a Bankruptcy?
Depending on your circumstances, the following exemptions may apply:
- Food required for you and your dependents for the next 12 months
- Clothing for you and or your dependants up to $4,000
- Household furnishings and appliances up to $4,000
- One motor vehicle up to $5,000
- Tools of your trade up to $10,000
- Medical and dental aids for you or your dependents, with no limit
- Your principal residence (including a mobile home) up to $40,000. However, if you co-own your home, this amount is reduced based on how much of the home you own
- Social allowance, handicap benefit, or a widow’s pension as long as the proceeds from the payment are separate from your other funds
- Registered plans, including RRSPs, RRIFs, RESPs, pensions, RDSPs, DPSPs (except for contributions made in the last 12 months). Note: transfers between registered plans are exempt, but payments made from these plans are not exempt
- Certain life insurance policies
- If your primary occupation is farming, up to 160 acres of land if your principal residence is located on that land and is part of your farm
- If your primary occupation is farming, any personal property necessary for farming operations over the next 12 months; and
- Sentimental items, including pets.