Assets You Can Keep

The Execution Act of Ontario provides exemption from seizure by judgment creditors) or in bankruptcy proceedings are as follows:

• Necessary clothing of the debtor and and the debtor’s dependants
• Household furnishing and appliances up to a value of $13,150.00
• Motor vehicle up to a value of $6,600.00
• Tools and personal property used to earn income up to a value of $11,300.00
• Principal residence with equity (net proceeds after selling costs) of less than $10,000.00
• Farmers…
  • Livestock, fowl, bees, books, tools and implements and other chattels ordinarily used by the debtor in the debtor’s business or calling not exceeding $29,100 in value;
  • Sufficient seed to seed all the person’s land under cultivation, not exceeding 100 acres.
  • Fourteen bushels of potatoes; Where seizure is made between the October 1st and the April 30th, such food and bedding as are necessary to feed and bed the exempt livestock and fowl until the following April 30th.

Other Legislation

Other Legislation also allows Ontario residents to keep:

• registered retirement savings plans (RRSPs) with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy
• cash surrender value of life insurance policies where the beneficiary named is the spouse, child, parent or grandchild (protected class).
• generally, pension plans.
• For further details on what you can keep, see Directive 11-R2 (from the Superintendent of Bankruptcy)

Income during bankruptcy (Surplus Income – Directive 11-R2)

When a person files an Assignment in Bankruptcy, a portion of their take-home pay may be payable to the Bankruptcy Estate for the general benefit of the unsecured creditors. The actual amount payable depends on several factors, such as the net take-home pay (Income after statutory deductions such as Canada Pension Plan (CPP), Employment Insurance (EI) and Income Tax) of the family, 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 at your initial consultation.

Contact us if you need advice and detailed information about bankruptcy. We are a licensed bankruptcy trustee in Waterloo and will be glad to help.