Bankruptcy Alberta Calgary Edmonton
What Assets Can Be Kept by a Debtor in Calgary, Edmonton or Anywhere else in Alberta?
These are pertinent questions that will be asked by anyone who is considering filing for bankruptcy in Calgary Edmonton or Alberta.
The specifics of what can be kept and what can be seized by a trustee in bankruptcy is specified within the laws of Alberta and a summary of this is given below.
Bankruptcy Alberta: Food, Clothing and Household Furniture (Including appliances).
When a bankruptcy is filed in Calgary, Edmonton or Alberta, the exemption limits for household furniture and any appliances within the home is set as $4000. What this means is if there is any valuables within the home that is more than $4000 and the trustee in bankruptcy knows about it they will seize it. Similarly the exemption limit for clothing of the debtor and their dependents is limited to a maximum of $4000. Any food that is required for the debtor and their dependents is exempted for a quantity that can last up to 12 months.
When filing for bankruptcy in Calgary, Edmonton or Alberta, Alberta bankruptcy laws allows the bankrupt to keep one vehicle that does not exceed a value of $5000. If there are more than two vehicles one will need to be surrendered to the trustee in bankruptcy.
Bankruptcy Alberta:Medical Aids
There is an unlimited limit of medical aids that is required by the debtor or their dependents under Alberta bankruptcy law.
Bankruptcy Alberta:The House and Personal Property
The equity in a house up to a maximum of $40,000 can be kept. If there is equity above $40,000, then the trustee will require the equity, however there is a clause that’s provides protection for one person if two people own one home and only one is going bankrupt.
In some cases, those with farms and those who are gainfully employed as farmers will be allowed to keep some amount of equity from the farm. This allows them to continue their farming operations after giving up some of their equity. Bankruptcy in Alberta, Edmonton or Calgary will exempt up to 160 acres of land if the bankrupt’s principal house is located on the 160 acres of land. Also any personal property that is required to operate the farm will be excluded by a trustee in bankruptcy.
Of recent, all pensions and disability savings plans and deferred profit sharing plans are exempts in a Bankruptcy Alberta. These includes RRSPs, RRIFs, RDSP and DPSPs.