What can I keep in a bankruptcy?

  • By Jillian Taylor-Mancusi

A person who files for bankruptcy is allowed to keep any property that qualifies as exempt under provincial or federal legislation and that has not been given as collateral to the creditors.

Some Typical Manitoba Exemptions:

  • Household furnishings not exceeding a total value of $4,500  (note: this is resale value, not replacement value)
  • Tools of the trade not exceeding a total value of $7,500, includes:
  • One motor vehicle not exceeding the value of $3,000, if necessary as a tool of the trade. This includes a vehicle used to get to and from work
  • Equity in a home owned by the person who filed for Bankruptcy, to a maximum of $1,500 each, if in joint tenancy, or $2,500 if not in joint tenancy
  • Locked-in pension plans and RRSP
  • Some life insurance policies

Manitoba Farmers’ Exemptions:

  • Animals necessary for farming operation for 12 months
  • Farm machinery and equipment necessary for the ensuing 12 months of operation
  • One motor vehicle if required in agricultural operations
  • One quarter section of land

Please contact us for a more detailed list of exemptions. Exemptions vary from one province to another. For Ontario exemptions, please contact our office.

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