Assets Exempt in bankruptcy
If you file for bankruptcy your trustee will assess your assets and financial situation to deal with your unsecured creditors and discharge your debts. Not all of your assets must be signed over to the trustee. Even if you file for bankruptcy, you will be able to keep some of your assets.
These “bankruptcy exemptions” are defined by the federal Bankruptcy and Insolvency Act.
What assets can you keep in bankruptcy?
The assets you keep are:
- property you are holding in trust (not your own property)
- most RRSP and insurance policies
- generally all personal effects and household goods (within reason)
- a basic vehicle (dependent on the value)
- tools needed for your work
Assets exempt in Ontario
Kevin Thatcher & Associates is licensed by the federal government as a licensed insolvency trustee, focusing on the below common exemptions. Your trustee will know what specific bankruptcy exemptions apply. In Ontario, for example, exempt assets include:
- a single automobile with a maximum value of $5650
- any tools of your trade including a work vehicle, for a maximum value of $11,300
- most pensions and many RRSPs depending on when you have contributed
- household goods such as: furniture and appliances, for a maximum value of $11,300
- personal effect such as clothing, for a maximum value of $5650
Other exemptions do exist, but those listed above would be those impacting the majority of the people we meet.Back