NWT bankruptcy exemptions
Property exempt from seizure in a bankruptcy is set out in the Exemptions 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 household furniture and equipment in your home worth $5,000 and you do not owe on these items, the equity you have in these items is $5,000. In the Northwest Territories, the exemption for the total of these items is $5,000. Therefore, in this case, you would be entitled to keep these possessions and the unsecured creditors cannot take them from you.
Household goods up to $5,000
All necessary and ordinary clothing of you and your family
Food for the next 12 months
Hunting tools up to $15,000
Your principal residence up to $50,000
One motor vehicle up to $6,000
Tools of the trade up to $12,000
The above exemptions do not apply:
Where you have absconded or are about to abscond from the territories, leaving no spouse or family in the territories
To a writ of execution issued on a judgment or order for the payment of support, or a judgment on a domestic contract, as defined in the Family Law Act