The Durham Region Mortgage Doctor Tells You Which Assets You Keep in a Bankruptcy!

These exemptions are applicable to all seizures not just in a bankruptcy or proposal context.  Bankruptcy Exemptions for other provinces and territories can be found here.

The property exempt from seizure is set by the provinces and territories and applies to the equity in the asset.

Equity is the excess that the value of an asset has over any charges or encumbrances against that asset.

For example, if you have a car worth $5,000 and there is a $2,000 secured debt against it then the equity in the car is $3,000. In Ontario the exemption for a car is $5,650 so in this example you are entitled to the equity of $3,000 and the unsecured creditors cannot take this.

Ontario Bankruptcy Exemptions are:

Clothing $5,600.00

Household Goods $11,300.00

Tools of the Trade $11,300.00

Farmers $28,300.00

Motor Vehicle $5,650.00

Effective July 7, 2008 exemptions are in effect for all registered retirement savings plans (RRSP’s, RRIF’s and DPSP’s (Deferred Profit Sharing Plans).

  • Contributions made in the 12 months prior to the date of bankruptcy will be recovered (clawed back) for the benefit of the bankruptcy estate for RRSPs in provinces without RRSP exemption laws (BC, Alberta, Ontario, NB, and NS);
  • There will be no upper cap on the amount of RRSPs that can be protected;
  • There will be no need to set up the RRSPs in a locked in plan to make them eligible for exemption
  • The court will have no jurisdiction to extend the one-year claw back period period in an appropriate case.

This article is courtesy of

In a world of “NO”…. let “Your Durham Region Mortgage Doctor” at Mortgage Intelligence Oshawa get you to “YES”!  Our years of experience and vast resources have helped so many clients get the approval they needed! Contact us today!


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