When you declare bankruptcy, you can still keep some of your assets, like your home or your car, depending on the province you live in. 

What assets can I keep in all provinces and territories? 

  • Registered retirement savings plans (RRSPs) with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy
  • Cash surrender value of life insurance policies where the beneficiary named is the spouse, child, parent or grandchild
  • Generally, pension plans

To learn more about what assets you can keep during bankruptcy, book a free consultation with a Licensed Insolvency Trustee.

To learn more about what assets you can and cannot keep when you file for bankruptcy, watch this short video.

Video transcript: Most people worry that they will lose everything and I can say that that is not true. In a bankruptcy, exempt assets are assets that you can keep that your creditors are not entitled to or they cannot seize and that is governed under provincial rules and so you can continue to pay your mortgage, you can continue to pay on your vehicle, you won’t lose everything. Now, if it turns out that there are certain non-exempt assets you have to turn into the trustee, it’s not punishment—consider that a settlement or a sort of token amount that you’re giving to the creditors in exchange for wiping out the debt.

Can I keep my income if I declare bankruptcy?

A portion of your take-home pay may be payable to the Licensed Insolvency Trustee for the benefit of all creditors. The payment amount is dependent on:

  • The take-home pay of the family unit
  • The number of people in the family and 
  • Whether the family has non-discretionary expenses such as child care or child support

Any questions you have with respect to surplus income can be addressed at your initial consultation.

Can I keep my car if I declare bankruptcy?

If you can continue to make loan payments during your bankruptcy, you may be able to keep your vehicle. Your bankruptcy does not prevent your car from being repossessed if you are not able to make payments.

If you are the owner of a motor vehicle that exceeds the exemption limit outlined by your province, there is a “buy-back” option. With your trustee, you can arrange to pay on the amount that exceeds the exemption limit.

Can I keep my house if I declare bankruptcy?

If you can continue to make your mortgage payments, you may be able to keep your home. Additionally, if your home equity falls within the exemption limits in your province, then your trustee will “disclaim” any rights to it.

Your home equity is determined by removing what you owe for the asset—the mortgage and property taxes. If that amount is over the exemption limit, you may be required to pay that value in order to keep your home. Sometimes, if the home equity amount exceeds the exemption amount considerably, homeowners will consider using this to pay off creditors.

What assets can I keep in bankruptcy in each province?

Alberta | British Columbia | Saskatchewan | Manitoba | Ontario | Quebec | New Brunswick | Newfoundland & Labrador | Nova Scotia | PEI | Northwest Territories | Nunavut | Yukon

What assets can I keep in bankruptcy in Alberta?

In Alberta, what you are entitled to keep is determined by the Civil Enforcement Act. In summary, you are generally able to keep the following property:

  • Food required by you and your dependents during the next 12 months
  • Necessary clothing up to a value of $4,000
  • Household furnishings and appliances to a value of $4,000
  • One motor vehicle not exceeding a value of $5,000 (equity)
  • Medical and dental aids required by you and your dependents
  • The equity in your principal residence, including a mobile home, up to a value of $40,000. If you are a co-owner of the residence, the amount of the exemption is reduced to an amount that is proportionate to your ownership interest
  • Personal property (i.e., tools, equipment, books) that you require to earn income from your occupation up to a value of $10,000
  • Social allowance, handicap benefit or a widow’s pension if the proceeds from the payment are not intermingled with your other funds
  • Where you are a bona fide farmer and your principal source of livelihood is farming: 160 acres if your principal residence is located on that 160 acres and the 160 acres is part of your farm
  • Where your primary income is from farming operations, personal property that you require for the proper and efficient conduct of your farming operations for the next 12 months
  • RRSPs, RRIFs, and RESPs
  • Life insurance policies — all life insurance policies are exempt as long as the beneficiary is a spouse child grandchild or parent of the owner of the policy
  • Pension plans
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in British Columbia?

  • Equity in a home in Greater Vancouver and Victoria up to a value of $12,000. In the rest of the province up to a value of $9,000
  • Equity in household items up to a value of $4,000
  • Equity in a vehicle up to a value of $5,000; The vehicle exemption drops to $2,000 if the debtor is behind on child care payments (to facilitate the enforcement of Maintenance Orders)
  • Equity in work tools up to a value of $10,000
  • Equity in essential clothing and health aids is unlimited
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Saskatchewan?

  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

For Non-Farmers:

  • Household furniture and personal effects to a value of $4,500 per person
  • Tools of the trade to a value of $4,500
  • A motor vehicle, if required for employment
  • $32,000 equity in your home ($64,000 if jointly owned)
  • Certain life insurance policies
  • Certain pensions
  • Necessary and ordinary clothing of the family
  • The books of a professional person
  • The trailer or portable shack occupied by the debtor as living quarters.
  • RRSPs, RRIFs and DPSPs are exempt from seizure

For Farmers:

  • Furniture, furnishings and appliances to a value of $10,000
  • The cash equivalent of produce sufficient to provide food and fuel for heating until the next harvest
  • All livestock, farm machinery and equipment, including one car or truck, necessary for the next twelve months operations
  • One motor vehicle, if required for business or profession, but not in addition to the one above
  • Tools and equipment to a value of $4,500 used by a farmer in their trade or profession
  • Equity in a personal residence to a value of $32,000 ($64,000 if jointly owned)
  • Seed grain equal to two bushels per acre of land under cultivation
  • Cash equivalent of crop equal to:
    • unpaid harvesting costs
    • living expenses to next harvest
    • necessary costs of farming until next harvest
  • The homestead provided it is not more than 160 acres
  • Any trailer that is occupied by the farmer as living quarters and not in addition to the house and buildings already exempt.
  • RRSPs, RRIFs and DPSPs are exempt from seizure
  • Certain life insurance policies
  • Certain pensions

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Manitoba?

  • Furniture, household furnishings and appliances not exceeding the total value of $4,500
  • Necessary and ordinary clothing of the debtor and family
  • Food and fuel necessary to the family for a period of six months or cash equivalent
  • If the debtor is a farmer:
    • animals necessary for farming operation for 12 months
    • farm machinery, dairy utensils and farm equipment necessary for ensuring 12 months
    • one motor vehicle if required for purposes of agricultural operations
    • Home quarter
  • Tools, implements, professional books and other necessaries not exceeding a total value of $7,500 used in the practice of the trade, occupation or profession
  • One motor vehicle, if necessary for work or transportation to and from work, not exceeding $3,000 in value
  • Articles and furniture necessary to the performance of religious services
  • Seed sufficient to seed all land of the debtor under cultivation
  • Health aids, including wheelchair, air conditioner, elevator, hearing aid, eyeglasses, prosthetic or orthopedic equipment, necessary to debtor or family
  • Chattel property of municipalities and schools
  • Actual residence of the bankrupt, equity of $1,500 each if in joint tenancy or tenancy in common, or $2,500 if not in joint tenancy
  • RRSPs, Registered Retirement Income Funds (RRIFs) and Deferred Profit Sharing Plans (DPSPs)
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy.

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Ontario?

  • Principal residence, if it has less than $10,000 of equity in it
  • Clothing and personal effects up to a value of $5,650.00
  • Household furniture and appliances up to a value of $13,150.00
  • Motor Vehicle up to a value of $6,600.00
  • Tools of the Trade up to a value of $11,300.00
  • Farmers
    • The livestock, fowl, bees, books, tools and implements and other chattels ordinarily used by the debtor in the debtor’s business or calling not exceeding $28,300 in value
    • Sufficient seed to seed all the person’s land under cultivation, not exceeding 100 acres
    • Fourteen bushels of potatoes
    • Where seizure is made between the October 1st and the April 30th, such food and bedding as are necessary to feed and bed the exempt livestock and fowl until the following April 30th
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Quebec?

  • The movable property which furnishes their main residence, used by and necessary for the life of the household, up to a market value of $6,000 established by the seizing officer
  • The food, fuel, linens and clothing necessary for the life of the household
  • The instruments of work needed for the personal exercise of their professional activity
  • Family papers and portraits, medals and other decorations
  • Property declared by a donor or a testament to be exempt from seizure except in certain cases
  • Judicially awarded support and sums given or bequeathed as support
  • Benefits payable under a supplemental pension plan to which an employer contributes on behalf of their employees, other amounts declared unseizable by an Act governing such plans and contributions paid or to be paid into such plans
  • Periodic disability benefits and expense reimbursements under a contract of accident and sickness insurance
  • Property of a person that he requires to compensate for a handicap
  • A certain portion of salaries and wages based on the number of dependents
  • Consecrated vessels and things used for religious worship
  • Employer contributions to pension, insurance or social welfare funds;
  • The value of the food and lodging supplied or paid for by the employer on the occasion of travelling while carrying out work
  • Passes given by a transportation undertaking to an employer’s employees
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

*Nevertheless, the property referred to in the first and third items above may be seized and sold by a creditor holding a hypothec thereon.

What assets can I keep in bankruptcy in New Brunswick?

  • Household furniture, appliances and utensils;
  • Food, clothing and home heating fuel;
  • One motor vehicle suitable for highway use;
  • Tools and equipment used in the practice of their profession or occupation;
  • Necessary medical and dental aids;
  • Household pets; and
  • Pension plans, Registered Retirement Savings Plans (RRSPs), Registered Disability Savings Plans (RDSPs) and Registered Retirement Income Funds (RRIFs).

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Newfoundland and Labrador?

  • Food required by debtor and dependents during the next 12 months
  • Medical and dental aids required by debtor and dependents
  • Domesticated animals which are kept as pets and not used for business purposes
  • Fuel or heating as a necessity for the debtor and their dependents
  • Clothing of the debtor and their dependents, of a value totalling $4,000
  • Appliances and household furnishings (which are defined as washing machine, clothes dryer, “reasonably necessary” bedroom suites and bedding, oven and stove top burners, “necessary” dishes and kitchen utensils, and “necessary” strollers, cribs and highchairs), of a value totalling $4,000
  • A motor vehicle of the debtor, value totalling $2,000
  • Items of sentimental value to the debtor, a value totalling $500
  • The debtor’s equity in their principal residence, $10,000
  • Personal property used by and necessary for the debtor to earn income from occupation, trade, business or calling, $10,000
  • RRSPs, Registered Retirement Income Funds (RRIFs) and Deferred Profit Sharing Plans (DPSPs)
  • Where the debtor’s primary occupation is farming, personal property, including agricultural products, ordinarily used by and necessary for the debtor to earn income from farming, to a value not exceeding $10,000
  • Where the debtor’s primary occupation is fishing, personal property ordinarily used by and necessary for the debtor to earn income from fishing to a value not exceeding $10,000
  • Where the debtor’s primary occupation is aquaculture, personal property ordinarily used by and necessary for the debtor to earn income from aquaculture to a value not exceeding $10,000
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Nova Scotia?

  • Reasonably necessary wearing apparel, household furnishings and furniture
  • Necessary fuel and food
  • Necessary grain, seeds, cattle, hogs, fowl, sheep and other livestock for the domestic use of the debtor and their family
  • Necessary medical and health aids
  • Farm equipment, fishing nets, tools and implements used in debtor’s chief occupation, not exceeding $7,500
  • Motor vehicle not exceeding $6,500

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Prince Edward Island?

  • The necessary and ordinary clothing of the debtor and their family
  • Any motor vehicle owned by the debtor not exceeding $3,000 in value if not required for employment, and $6,500 if required to retain employment or for transportation to a place of employment where public transportation facilities are not reasonably available.
  • The household furniture, utensils, equipment, food and fuel that are contained in and form part of the permanent home of the debtor, not exceeding $5,000 in value
  • Registered Retirement Income Funds (RRIFs)
  • RRSP’s are exempt (no limit) provided they have a defined beneficiary which is a specific member of the direct family
  • In the case of a debtor other than a farmer, tools, instruments and other chattels ordinarily used by the debtor in their business, trade or calling, not exceeding $2,000 in value
  • In the case of a debtor who is a farmer:
    • livestock, fowl, agricultural machinery and equipment ordinarily used by the debtor in their farm operation, not exceeding $5,000 in value, and
    • sufficient seed to seed all their land under cultivation not exceeding 100 acres
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12-month period prior to the date of bankruptcy.

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Northwest Territories?

  • Household goods not exceeding $5,000 in value
  • Necessary and ordinary clothing of the debtor and the family of the debtor
  • Food, fuel and other necessaries of life required by the debtor and the family of the debtor for the next 12 months
  • Tools of the trade not exceeding $12,000 in value and tools used for hunting not exceeding $15,000 in value
  • Principal residence if it has $50,000 or less in equity
  • Motor vehicle not exceeding $6,000 in value
  • Necessary medical and dental aids
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Nunavut?

  • All necessary household goods
  • Necessary and ordinary clothing of the debtor and the family of the debtor
  • Food, fuel and other necessaries of life required by the debtor and the family of the debtor for the next 12 months
  • Necessary tools of the trade
  • Principal residence if it has $35,000 or less in equity
  • A principal motor vehicle
  • Necessary medical and dental aids
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

What assets can I keep in bankruptcy in Yukon?

  • Household goods not exceeding $200 in value
  • Necessary and ordinary clothing and personal effects of the debtor and the family of the debtor not exceeding $4,000 in value.
  • Food, fuel and other necessaries of life required by the debtor and the family of the debtor for the next 12 months
  • Tools of the trade not exceeding $600, including livestock
  • Principal residence if it has $3,000 or less in equity
  • Necessary medical and dental aids
  • Registered Retirement Savings Plans (RRSPs) are exempt from seizure with the exception of any contributions made to RRSPs during the 12 month period prior to the date of bankruptcy

For further details on what you can keep, book a free consultation with a Licensed Insolvency Trustee.

Learn more about bankruptcy.