Ontario Bankruptcy Exemptions

(Assets you keep in a Bankruptcy)

These exemptions are applicable to all seizures not just in a bankruptcy or proposal context.

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

Ontario Trillium Benefit:

As of July 12, 2012, the Ontario Trillium Benefit. benefit will combine three existing refundable tax credits: the Ontario Energy and Property Tax Credit (OEPTC), the Northern Ontario Energy Credit (NOEC) and the Ontario Sales Tax Credit (OSTC).

Position of the Office of the Superintendent of Bankruptcy (OSB):

The OSB’s position is that, subject to court interpretation to the contrary, the Ontario Trillium Benefit (and its OEPTC, NOEC and OSTC constituent refundable tax credits) is exempt from seizure. Therefore, the benefit must be remitted to the bankrupt. Nevertheless, it is captured by the definition of “total income” in section 68 of the BIA and therefore must be accounted for in the surplus income calculation.