What assets are protected or exempt in Alberta when filing a bankruptcy or consumer proposal?
In Alberta, the Civil Enforcement Act and the Regulations thereto set out various exemptions available to individuals when filing a bankruptcy or consumer proposal.
Some of the more common exemptions are under this legislation are:
1. The necessary clothing for you and your dependents up to $4,000
2. Up to $4,000 in home furnishings and appliances
3. All medical and dental aids are exempt
4. A motor vehicle valued at $5,000 or less
5. Tools of trade used to earn income from your occupation up to $10,000
6. Equity in an owner occupied home for $40,000 and is reduced based on the percentage ownership in the home
In addition to these exemptions, there are also exemptions available under Federal law and in particular:
1. All registered RRSPs, RRIFs
2. All registered Deferred Profit Sharing Plans (“ DPSPs”)
3. All registered disability plans (“RDSPs”)
4. All registered education post-secondary education plans (“RESPs”)