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”)

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