Bankruptcy Ottawa

If you live in Ottawa and are filing for bankruptcy or any other place in Canada for that matter there are bankruptcy exemptions that you need to be aware of. Put simply, a bankruptcy exemption is an unsecured asset or chattel that creditors cannot take from you in a personal bankruptcy proceeding. There are prescribed dollar limits to the various items mentioned below. To get the exact numbers you need to talk to a bankruptcy trustee.

Bankruptcy Exemptions – What You Can Keep:

1. The creditors can’t take your ordinary clothing items that we all use day in and day out. If you have a collection of furs or Gucci hand bags then you can expect they will not be exempt and will be taken and sold to pay off your creditors.

2. Your house hold items are protected including furniture, utensils, etc. Unless you have valuable antiques or paintings you will probably be left with what you have. Again there are limits to what you can keep. The bankruptcy trustee will make those decisions.

3. If you have tools for work that are unsecured you can keep them according to the rules that are laid out in the act.

4. If you are a farmer you are allowed to keep a higher value of tools. You also can keep seed that you may have for planting crops. Again you need to clarify this with a trustee.

6. In most cases your motor vehicles will be protected if used for work and has a value under $5,000.

7. Your RRSP’s, RRIF’s and DPSP’s will be protected with the exception of those contributions made during the previous 12 months. This is another area that you need to consult a Bankruptcy \trustee about. Rules change and they will know what is currently correct.

Basically the bankruptcy exemptions are there to protect you and your family members from creditors taking the fundamental basics a family would normally need to live.