Alberta bankruptcy exemptions
Property exempt from seizure in a bankruptcy is set out in the Civil Enforcement Act and applies to the equity in an asset. Equity is the difference between the value of the asset and what is owed on the asset.
Example: If you have a car worth $10,000 and you still owe $6,000 in secured debt, the equity you have in the car is $4,000. In Alberta, the exemption for a car is $5,000. Therefore, in this case, you would be entitled to the equity of $4,000 and the unsecured creditors cannot take this from you.
Exempt property
Food that you and your dependants require over the next 12 months
Necessary clothing for you and/or your dependants up to $4,000
Household furnishings and appliances up to $4,000
One motor vehicle up to $5,000
Tools of the trade up to $10,000
Unlimited medical and dental aids that you and/or your dependants require
Your principal residence (including a mobile home) up to $40,000 - however, if you are a co-owner of the residence, the amount of the exemption allowed under this provision is reduced to an amount proportionate to your ownership interest in the residence
If your primary occupation is not farming, personal property up to the value of $10,000 that you use to earn income from your occupation
Social allowance, handicap benefit or a widow's pension if the proceeds from the payment are not intermingled with any other of your funds
Exempt farm property
In the case that your primary occupation is farming, up to 160 acres of land if your principal residence is located on that land and it is part of your farm. In the case that your primary occupation is farming, your personal property necessary for the proper and efficient conduct of your farming operations for the next 12 months.