Ontario Bankruptcy Laws: Chapter 11 & Chapter 13 Bankruptcy?

Ontario Bankruptcy Laws

Chapter 11 and Chapter 13 Bankruptcy in Ontario?

There appears to be some confusion about filing for bankruptcy in Ontario.

Occasionally people ask us about Chapter 11 and Chapter 13 bankruptcies. These ‘chapters’ are part of the United States bankruptcy laws and have nothing to do with an Ontario resident filing for bankruptcy in Ontario over Canadian debt.

Given the international nature of the internet and many books, it is not surprising that there is some confusion.

Ontario Bankruptcy Laws

Here in the Toronto area, we are governed by two main pieces of legislation – the Bankruptcy and Insolvency Act (BIA), which is a federal law for all of Canada – and the Ontario Execution Act, which is a provincial law.

While some assets, such as most RRSPs and RRIFs are exempted from bankruptcy in the BIA – in Ontario, the majority of asset exemptions are set in the Ontario Execution Act and include such things as:

  • No limit on clothing
  • Up to $13,150.00 of items such as furniture and appliances
  • Up to $11,300 of tools that are used to earn income
  • Up to $6,600.00 of equity in one automobile
  • Special exemptions for farmers

Other Provincial Bankruptcy Laws

All of the provinces of Canada have their own bankruptcy exemption laws – and the amounts that are exempt can vary greatly.

For example, in Alberta, up to $40,000 of equity in the prime residence is exempt from bankruptcy – while here in Ontario, no equity in the prime residence is exempt from bankruptcy.

Obviously, it is essential that you deal with a bankruptcy trustee that is licensed in your province – and is available to meet with you in your area – to make sure you are getting all the facts that apply to you.

If you live in the Toronto area and are contemplating bankruptcy, you are welcome to call David Sklar & Associates, Licensed Insolvency Trustee to book a free consultation. We will review your finances in detail and discuss all of your options for getting out of debt and getting on with your life.


Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
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Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
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21:33 06 Jun 22
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12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
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Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
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03:08 10 May 22
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02:42 10 May 22