Bankruptcy Exemptions by Province

When a person files an Assignment in Bankruptcy, a portion of their take-home pay may be payable to the Trustee for the benefit of all creditors. The actual amount payable depends on several factors, such as the take-home pay of the family unit, the number of people in the family and whether the family has non-discretionary expenses such as child care or child support. Any questions you have with respect to surplus income can be addressed with us if you require clarification.

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Other Legislation:

Under legislation outside of the Bankruptcy and Insolvency act some other items are exempted. You are allowed to keep:

  • cash surrender value of life insurance policies (including some R.R.S.P.'s) where the beneficiary named is the spouse, child, parent or grandchild.
    generally, pension plans

For further details on what you can keep, see Directive 11-R (from the Superintendent of Bankruptcy)

The Meaning of Directive 11-R

When a person files an Assignment in Bankruptcy, a portion of their take-home pay may be payable to the Trustee for the benefit of all creditors. The actual amount payable depends on several factors, such as the take-home pay of the family unit, the number of people in the family and whether the family has non-discretionary expenses such as child care or child support. Any questions you have with respect to surplus income can be addressed with us if you require clarification.

Provincial Exemption comparisons:

Jump to your province to read the exemptions granted by the Federal Government in your area:
ON | AB | BC | SK | MB | QC | NS | NB | NF


Exemptions in Bankruptcy - Province of Alberta:

Items exempt in a Bankruptcy / Consumer Proposal filing in the province of Alberta are as follows:

  • Food required by you and your dependents for a period of 12 months
  • Medical and Dental aids required by you and your dependents regardless of value
  • Clothing up to a value of $ 4,000.00
  • Household furnishings and appliances up to a value of $4,000.00
  • Tools of the Trade (equipment/books required to maintain your employment income) up to a value of $10,000.00
  • One Motor Vehicle with a maximum value of $5,000
  • The equity in your principal residence, including a mobile home or parked trailer, up to a value of $40,000. If you are a partial-owner of the residence, the amount of the exemption is reduced to an amount that is proportionate to your ownership interest.
    Additional Exemptions specifically for Farmers:
    • If your farm also contains your principal residence you are entitled to keep 160 acres of land regardless of value
    • When you earn your livelihood from farming your are also entitled to keep 12 months of supplies required to maintain farming operations
    • Farm Equipment and Livestock up to a value of $25,000


Exemptions in Bankruptcy - Province of Ontario:

Items exempt in a Bankruptcy / Consumer Proposal filing in the province of Ontario are as follows:

  • Clothing up to a value of $ 5,000.00
  • Household Goods up to a value of $10,000.00
  • Tools of the Trade up to a value of $10,000.00
  • Farm Equipment and Livestock up to a value of $25,000
  • One Motor Vehicle with a maximum value of $5,000

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Exemptions in Bankruptcy - Province of British Colombia:

Items exempt in a Bankruptcy / Consumer Proposal filing in the province of British Colombia are as follows:

  • All essential clothing and medical aids are exempt regardless of value
  • Household Goods up to a value of $4,000.00
  • Tools of the Trade up to a value of $10,000.00
  • One Motor Vehicle with a maximum value of $5,000
    • NOTE: In the event that the Debtor is behind on Child Support / Spousal Support payments and there is a Maintenance Order on file the available exeption for a motor vehicle drops to:$2,000.
  • Home Equity exemptions:
    • Greater Vancouver and Victoria: Home equity exemption not to exceed $12,000
    • Elsewhere: Home equity exemption not to exceed $9,000

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Exemptions in Bankruptcy - Province of Saskatchewan:

Items exempt in a Bankruptcy / Consumer Proposal filing in the province of Saskatchewan are as follows:

  • For Non-Farmers:
    • Household Goods, personal effects and furniture up to a value of $4,000.00
    • Tools of the Trade up to a value of $4,500.00
    • One Motor Vehicle provided it is required to maintain your employment
    • Home Equity exemptions:
      • Home equity exemption for a single owner: $32,000
      • Home equity exemption for a joint ownerhip: $64,000
    • Certain Life Insurance policies and Pensions are exempt - others are not
  • For Farmers:
    • Household Goods, personal effects, appliances and furniture up to a value of $10,000.00
    • Sufficient cash to provide food & fuel for heating to livestock until the next harvest
    • All livestock, farm machinery, and equipment necessary for the next 12 months of farm operations. Also includes a vehicle allowance for one commercial vehicle.
    • One motor vehicle for business use and maintenance of employment is exempt provided one has not been exempted for commercial farming uses above.
    • Tools and equipment up to $4,000 in value provided they are used by a farmer in his trade or profession.
    • Home Equity exemptions:
      • Home equity exemption for a single owner: $32,000
      • Home equity exemption for a joint ownerhip: $64,000
    • Seed grain totaling 2 bushels per acre for land currently under cultivation
    • Cash equivalent of crop equal to:
      • unpaid harvesting costs
      • Living expenses to next harvest
      • Necessary costs of farming until next harvest
    • Certain Life Insurance policies and Pensions are exempt - others are not
    • Also exempted: "The Homestead"

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Exemptions in Bankruptcy - Province of Manitoba:

Items exempt in a Bankruptcy / Consumer Proposal filing in the province of Manitoba are as follows:

  • Ordinary and Necessary clothing required by the Debtor and their family
  • Food and fuel necessary for the family for a period of 6 months (or equivalent cash value)
  • Household Goods, personal effects and furniture up to a value of $4,500.00
  • In the event that the Debtor is a Farmer:
    • Animals necessary for farming operation for one year
    • All farm equipment, dairy utensils, and machinery required to maintain livestock and farming function for a 12 month period
    • For agricultural purposes, one motor vehicle may be exempted
    • Home quarter / homestead also exempted
    • Allowance for seed required for one season on all cultivated land
  • Tools of trade, professional books, and other necessaries not exceeding a total value of $7,500 provided they are used in occupation, profession, or practice of a trade
  • ONE motor vehicle, provided it is required for transportation to and from work with a value not exceeding $3,000
  • Furniture and other articles necessary for the performance of religious services
  • Any chattel property belonging to municipalities and schools
  • Health aids including: wheelchairs, scooters, eye glasses, air conditioner, prosthetic or orthopedic devices necessary to the Debtor or family unit
  • Actual residence of the bankrupt debtor, including equity of $1,500 each in the event of joint tenancy; or $2,500 each if not in joint tenancy.

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Exemptions in Bankruptcy - Province of Quèbec:

Items exempt in a Bankruptcy / Consumer Proposal filing in the province of Quèbec are as follows:

  • Total market value of the main property or residence required and necessary for the live of the household up to a value of $6,000
  • Food, fuel, clothing, and personal possessions of the family including all family papers, portraits, medals and any other decorations
  • Personal tools of the trade required to maintain professional activities
  • Judicially awarded support and monies given, or bequeathed as support, for the livelihood of the family unit
  • Any personal property required to compensate for a handicap
  • Periodic disability benefits and expense reimbursement entitlements due to medical need or hardship
  • Benefits payable under a supplemental pension plan provided by an employer that makes contributions to the plan.

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Exemptions in Bankruptcy - Province of Nova Scotia:

Items exempt in a Bankruptcy / Consumer Proposal filing in the province of Nova Scotia are as follows:

  • All necessary apparel, household furnishings and appliances
  • Food and Fuel required for the family unit
  • All necessary health and medical aids
  • Necessary grain, cattle, hogs, fowl, seeds, sheep, and other livestock
  • Tools of the trade, farm equipment, fishing nets, tools and implements used in the Debtor's chief occupation of a value not exceeding $1,000
  • One motor vehicle with a value not exceeding 3,000

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Exemptions in Bankruptcy - Province of New Brunswick:

Items exempt in a Bankruptcy / Consumer Proposal filing in the province of New Brunswick are as follows:

  • Household furniture and appliances up to a value of $4,000.00
  • All food, clothing and fuel required by the Debtor and their family
  • Two horses including sets of harness, two cows, ten sheep, two hogs and twenty fowl, and their associated food requirement for a six month period
  • Necessary seed grain and potatoes required for planting purpose: up to forty bushels of oats, ten bushels of barley, ten bushels of buckwheat, ten bushels of wheat and thirty-five barrels of potatoes
  • Tools of the trade necessary for the Debtor to earn income from occupation or trade not exceeding $6,500
  • One motor vehicle having a realizable value of not more than $6,500, if the motor vehicle is required by the debtor to retain employment or if it is necessary to the debtor's trade, profession or occupation or for transportation to a place of employment where reasonable public transportation facilities are not available
  • Any medical or health aids required by the Debtor or their dependents
  • Pets belonging to the Debtor or their family
  • Pensions

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Exemptions in Bankruptcy - Province of Newfoundland and Labrador:

Items exempt in a Bankruptcy / Consumer Proposal filing in the province of Newfoundland and Labrador are as follows:

  • Food, fuel, clothing, required by the Debtor and their family for a period of 12 months
  • Any medical or dental aids required by the Debtor or their dependents
  • Domesticated animals kept as pets and not required for business purposes
  • Clothing of the Debtor up to a value of $4,000.00 including family members' requirements
  • Household furnishings and appliances which are defined as washing machine, clothes dryer, bedroom suites and appliances; and required strollers, cribs and highchairs for the care of infant dependents. Total value of both requirements not exceeding $4,000
  • One Motor Vehicle with a maximum value of $2,000
  • Items of sentimental value not exceeding $500
  • Equity in the Debtor's primary residence totaling $10,000
  • Tools of the trade necessary for the Debtor to earn income from occupation or trade not exceeding $10,000

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