Ontario bankruptcy exemptions
Property exempt from seizure in a bankruptcy is set by the provincial government 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 $5,000 and you do not owe any creditors for it, the equity you have in the car is $5,000. In Ontario, the exemption for this type of property is $5,650. Therefore, in this case, you are entitled to keep the car and the unsecured creditors cannot take this from you.
Necessary and ordinary wearing apparel of you and your family not exceeding $5,650 in value
Household furniture, utensils, equipment, food and fuel that are contained in and form part of your permanent home not exceeding $11,300 in value
Tools and instruments and other chattels ordinarily used by you in your business, profession or calling not exceeding $11,300 in value
One motor vehicle not exceeding $5,650 in value
Exempt farm property
Livestock, fowl, bees, books, tools and implements and other chattels ordinarily used by you in your business or calling not exceeding $25,000 in value
Sufficient seed to seed all you land under cultivation, not exceeding 100 acres
14 bushels of potatoes
Where items are seized between the October 1 and April 30, food and bedding necessary to feed and bed the exempt livestock and fowl until the following April 30
For more information on bankruptcy exemptions in Ontario, consult a BDO trustee in the province.