Allowable Bankruptcy Exemptions in Ontario
Every province has its own allowable exemptions. For Ontario, the equity in your home is not protected. Ultimately, conditional on your situation, some of your assets may be exempt from seizure for sale by the Trustee. In Ontario some asset exemptions could include:
- Clothing -No Limit.
- Tools of your Trade up to $11,300 in value Note: farming tools are treated differently.
If you own your Automobile
If your Automobile is valued more than $6,600.00 , then you will be required to pay the amount that is over $6,600.00 to your trustee. This is if you want to keep that car.
While RRSPs are exempt from seizure, if bankruptcy is declared, your RRSPs (except for those payments made into your RRSPs over the previous 12 months) remain yours. RRSPs are not included with assets that can be taken and distributed to your creditors
RRIFs are exempt from seizure in bankruptcy. If bankruptcy is declared, your RRIFs (except for those payments made into your RRIFs over the previous 12 months) remain yours.
For more information on what items are exempt, please see http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90e24_e.htm.
See our article on home ownership to see if you will lose your home in a bankruptcy.
Only licensed Bankruptcy Trustees can determine eligibility, file and administer a bankruptcy or a consumer proposal. Call David Sklar and associates today to find out more, and see exactly what your options are.