Retaining Your Assets
Can I Keep My Assets If I Get a Bankruptcy in Canada?
The Civil Enforcement Act of Alberta protects certain assets in a bankruptcy scenario. The assets protected and referred to as exemptions are listed below. It is important to understand what these are as it's key to retaining your assets.
Bankruptcy Exemptions in Alberta:
- Enough food for you and your dependants for the next 12 months
- Clothing for you and/or your dependants up to $4,000
- Household furnishings and appliances up to $4,000 (based on yard-sale values)
- One motor vehicle with equity up to $5,000 (we can do a blackbook search for you)
- Tools of your trade up to $10,000
- No limit on medical and dental aids
- Your principal residence up to $40,000; if you co-own your home, this amount will be reduced based on how much of the home you own
- Social allowance, handicap benefit or a widow’s pension as long as the proceeds from the payment are separate from your other funds
- Registered Retirement Savings Plans RRSPs, Registered Retirement Income Funds (RRIFs), Registered Disability Savings Plans (RDSP), Deferred Profit Sharing Plans (DPSPs) and Registered Education Saving Plans (RESPs)and pensions
- Certain life insurance policies
Bankruptcy Exemptions for Farmers
Up to 160 acres of land is exempt if your principal residence is located on that land and is part of your farm. Any personal property necessary for your farming operations over the next 12 months is also exempt from bankruptcy. For more information about bankruptcy exemptions in Alberta please speak to a local Licensed Insolvency Trustee.
Most of the people we help are able to keep the homes they are living in and the vehicle they drive. We would be happy to meet with you to discuss your situation and determine on a confidential basis what a bankruptcy would look like to you, and discuss alternatives to bankruptcy as well.
Most people going through a bankruptcy or consumer proposal get to keep their home and vehicle.
Please reach out and let us know that you are interested in becoming debt free and retaining your assets. You can do this by calling us at 403-561-8228, texting us at 587-438-9786 or emailing firstname.lastname@example.org. We can help you to get a bankruptcy in Canada.
Let's get started, contact The Fryzuk Group, Licensed Insolvency Trustees, now.