New Exemption Limits for Ontario

Effective December 14, 2005, the Province of Ontario has amended the limits on the amounts for certain assets which are exempt from seizure by a trustee in a bankruptcy. The new values are:

$5,650 worth of personal possessions (clothing, jewelry, sports equipment, etc.);

$5,650 worth of motor vehicles (cars, trucks etc.);

$11,300 worth of home furnishings;

$11,300 worth of tools of the trade (equipment that you use to earn a living);

and certain types of life insurance.

In addition, when the new Bankruptcy rules come into effect (we assume during the summer of 2006), RRSPs will also be protected, but there are exceptions – for more details read our report on bankruptcy reform in Canada .

Exemption limits are different in each province. We suggest you you contact a licensed trustee to determine what is exempt in your province.