In this guide
How bankruptcy exemptions work in Canada
Bankruptcy exemptions are the assets you keep when you file. The rules come from two places: federal law under the Bankruptcy and Insolvency Act, and your province’s own legislation, which sets the specific dollar limits.
Exemptions are based on equity, not the total value of an asset. Equity is the difference between what an asset is worth and what you owe on it. If you own a car worth $8,000 and owe $5,000 on the loan, you have $3,000 in equity. If your province’s vehicle exemption is $5,000 or more, you keep the car.
Federal law protects your RRSPs (apart from contributions in the last 12 months), RRIFs, DPSPs and RDSPs in every province. RESPs and TFSAs are not protected.
What can you keep in bankruptcy in Alberta?
Alberta’s exemptions are set out in the Civil Enforcement Act.
| Asset | Exemption limit |
|---|---|
| Food (you and your dependants) | 12 months’ supply |
| Clothing (you and your dependants) | Up to $4,000 |
| Household furnishings and appliances | Up to $4,000 |
| One motor vehicle | Up to $5,000 |
| Medical and dental aids | No limit |
| Principal residence equity | Up to $40,000 (prorated if co-owned) |
| Farmland (if principal residence is on it) | Up to 160 acres |
| Farm personal property | Next 12 months of operations |
| Tools of the trade | Up to $10,000 |
| Social allowance, handicap benefit, or widow’s pension | Exempt if kept separate from other funds |
| RRSPs, RESPs, RRIFs, and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
Alberta is one of the more generous provinces for home equity. The $40,000 limit gives a homeowner with modest equity real breathing room, and it’s prorated if you co-own the home.
Source: Government of Alberta – Civil Enforcement Act
What can you keep in bankruptcy in British Columbia?
British Columbia’s exemptions are set out in the Court Order Enforcement Act.
| Asset | Exemption limit |
|---|---|
| Clothing (you and your dependants) | No limit |
| Household furnishings and appliances | Up to $4,000 |
| One motor vehicle | Up to $5,000 ($2,000 if you owe child support) |
| Medical and dental aids | No limit |
| Principal residence equity (Greater Vancouver and Victoria capital area) | Up to $12,000 |
| Principal residence equity (elsewhere in BC) | Up to $9,000 |
| Tools of the trade | Up to $10,000 |
| RRSPs (except contributions in the last 12 months) and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
The home equity exemptions in BC are low compared to the property values in the province. If you own property in Vancouver or Victoria with any real equity, bankruptcy is expensive, and a consumer proposal is worth looking at.
What can you keep in bankruptcy in Manitoba?
Manitoba’s exemptions are set out in the Executions Act and the Judgments Act.
| Asset | Exemption limit |
|---|---|
| Food and fuel (you and your dependants) | 6 months’ supply (or cash equivalent) |
| Clothing (you and your dependants) | No limit |
| Household furnishings and appliances | Up to $4,500 |
| Articles and furniture for religious services | Exempt |
| One motor vehicle (needed for work or getting to work) | Up to $3,000 |
| Health aids (you and your dependants) | No limit |
| Principal residence equity (sole owner) | Up to $2,500 |
| Principal residence equity (co-owned) | Up to $1,500 |
| Tools of the trade | Up to $7,500 |
| Seed to seed all land under cultivation | Exempt |
| RRSPs (except last 12 months), RRIFs, DPSPs (except last 12 months), and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
Manitoba farming exemptions
| Asset | Exemption limit |
|---|---|
| Animals necessary for operations | Next 12 months |
| Farm machinery, dairy utensils, and equipment | Next 12 months |
| One motor vehicle for farm operations | Exempt (no dollar limit) |
| Farmland | Up to 160 acres |
| House, stables, barns, and fences on your farm | Exempt |
Manitoba has one of the lowest home equity exemptions in the country at $2,500. A consumer proposal might be the more sensible route if you have equity. Farm operators get extra protection: livestock, machinery and up to 160 acres of farmland can be exempt.
What can you keep in bankruptcy in New Brunswick?
New Brunswick’s exemptions are set out in the Enforcement of Money Judgments Act.
| Asset | Exemption limit |
|---|---|
| Food, clothing, and fuel (you and your dependants) | 3 months’ supply |
| Household furnishings and appliances | Up to $5,000 (more in some cases) |
| One motor vehicle (required for employment) | Up to $6,500 |
| Medical and health aids (you and your dependants) | No limit |
| Tools of the trade | Up to $6,500 |
| Pets | Exempt |
| RRSPs, RDSPs, RRIFs, and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
New Brunswick has no specific home equity exemption, so any equity in your home is available to creditors unless you file a consumer proposal instead to protect it.
New Brunswick farming exemptions
| Asset | Exemption limit |
|---|---|
| Horses with harnesses | 2 |
| Cows | 2 |
| Sheep | 10 |
| Hogs | 2 |
| Fowl | 20 |
| Food for above animals | 6 months |
| Seed grain and potatoes | 40 bushels oats, 10 bushels barley, 10 bushels buckwheat, 10 bushels wheat, 35 barrels potatoes |
What can you keep in bankruptcy in Newfoundland and Labrador?
Newfoundland and Labrador’s exemptions are set out in the Judgment Enforcement Act, Judgment Enforcement Regulations, and the Personal Property Security Act.
| Asset | Exemption limit |
|---|---|
| Food (you and your dependants) | 12 months’ supply |
| Fuel and heating (you and your dependants) | Exempt |
| Clothing (you and your dependants) | Up to $4,000 |
| Household furnishings and appliances | Up to $4,000 |
| One motor vehicle | Up to $2,000 |
| Medical and dental aids (you and your dependants) | No limit |
| Principal residence equity | Up to $10,000 |
| Tools of the trade or business | Up to $10,000 |
| Items of sentimental value | Up to $500 |
| Pets | Exempt |
| RRSPs (except last 12 months), RRIFs, DPSPs (except last 12 months), and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
Newfoundland and Labrador farming, fishing, and aquaculture exemptions
If your primary occupation is farming, fishing, or aquaculture, personal property needed to earn income is exempt up to $10,000 per category.
What can you keep in bankruptcy in Nova Scotia?
Nova Scotia’s exemptions are set out in the Judicature Act and the Personal Property Security Act.
| Asset | Exemption limit |
|---|---|
| Food and fuel (you and your family) | No limit |
| Clothing (you and your family) | No limit |
| Furniture, household furnishings, and appliances | Up to $5,000 |
| One motor vehicle (required for employment where public transit is not available) | Up to $6,500 |
| Medical and health aids (you and your family) | No limit |
| Farm equipment, fishing nets, tools of your chief occupation | Up to $7,500 |
| Grain, seeds, cattle, hogs, fowl, sheep, and other livestock for domestic use | No limit |
| RRSPs (except last 12 months), RESPs, RRIFs, and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
Nova Scotia does not have a specific home equity exemption.
What can you keep in bankruptcy in Nunavut?
Nunavut’s bankruptcy exemptions are set by the territorial government.
| Asset | Exemption limit |
|---|---|
| Household furniture, utensils, and equipment | No limit |
| Clothing (you and your family) | No limit |
| Food and fuel | 12 months’ supply |
| Principal residence equity | Up to $35,000 |
| Medical and health aids (you and your family) | No limit |
| Hunting tools and tools of the trade | No limit |
| RRSPs (except last 12 months) and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
What can you keep in bankruptcy in the Northwest Territories?
The Northwest Territories’ exemptions are set out in the Exemptions Act and Exemptions Regulations.
| Asset | Exemption limit |
|---|---|
| Household furniture and appliances | Up to $5,000 |
| Clothing (you and your family) | No limit |
| Food and fuel | 12 months’ supply |
| One motor vehicle | Up to $6,000 |
| Principal residence equity | Up to $50,000 |
| Medical and health aids (you and your family) | No limit |
| Hunting tools | Up to $15,000 |
| Tools of the trade | Up to $12,000 |
| RRSPs (except last 12 months) and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
The Northwest Territories and Saskatchewan have the highest home equity exemptions in Canada at $50,000.
What can you keep in bankruptcy in Ontario?
Ontario’s bankruptcy exemptions are set out in the Execution Act. The amounts below were updated in December 2025.
| Asset | Exemption limit |
|---|---|
| Clothing (you and your dependants) | No limit |
| Household furnishings and appliances | Up to $17,091 |
| One motor vehicle | Up to $8,578 |
| Medical and dental aids (you and your dependants) | No limit |
| Principal residence equity | Exempt if equity does not exceed $12,997. If equity exceeds $12,997, there is no exemption. |
| Tools of the trade | Up to $17,362 |
| RRSPs (except last 12 months), RRIFs, and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
Source: Ontario – Execution Act, R.S.O. 1990, c. E.24
Ontario farming exemptions
| Asset | Exemption limit |
|---|---|
| Livestock, fowl, bees, books, tools, and implements of the trade | Up to $37,820 |
Ontario’s home equity rule differs from most provinces. What matters is your home equity on the day you file. If it’s at or below the limit, your home is safe from creditors in bankruptcy, as long as you keep up the mortgage payments.
If it’s higher than the limit, your Licensed Insolvency Trustee can sell the home, or you pay the trustee for the equity above the limit to keep your home. Your trustee will advise further.
What can you keep in bankruptcy in Prince Edward Island?
PEI’s exemptions are set out in the Judgment and Execution Act.
| Asset | Exemption limit |
|---|---|
| Food, clothing, and fuel (you and your family) | As needed |
| Household furniture, utensils, equipment, food, and fuel | Up to $5,000 |
| One motor vehicle (required for work) | Up to $6,500 |
| One motor vehicle (not required for work) | Up to $3,000 |
| Medical and health aids (you and your family) | No limit |
| Tools of the trade | Up to $2,000 |
| RRSPs (except last 12 months), RRIFs, and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
PEI farming exemptions
| Asset | Exemption limit |
|---|---|
| Livestock, fowl, agricultural machinery, and equipment for farm operations | Up to $5,000 |
| Seeds to cultivate land | Up to 100 acres |
PEI does not have a specific home equity exemption.
What can you keep in bankruptcy in Quebec?
Quebec’s exemptions are set out in the Code of Civil Procedure (Article 694).
| Asset | Exemption limit |
|---|---|
| Food, fuel, linens, and clothing | No limit |
| Household furnishings and appliances | Up to $7,000 (market value assessed by bailiff) |
| A portion of your wages and salary | Based on number of dependants |
| One motor vehicle required for work | Exempt |
| Court-awarded or donated support payments | Exempt |
| Employer contributions to pension, insurance, or social welfare plans | Exempt |
| Vouchers or transport passes for employment travel | Exempt |
| Disability benefits and accident/sickness insurance reimbursements | Exempt |
| Property required to compensate for a disability | Exempt |
| Tools of the trade | Exempt (no dollar limit) |
| RRSPs (except last 12 months) and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
| Family papers, portraits, medals, and decorations | Exempt |
| Items used in religious worship | Exempt |
Source: Quebec – Code of Civil Procedure, CQLR c C-25.01, art. 694
Quebec does not have a traditional home equity exemption like other provinces. Your principal residence is protected from seizure only when the total claim against you is less than $20,000.
Source: Quebec Ministry of Justice – Unseizable Property and Income
What can you keep in bankruptcy in Saskatchewan?
Saskatchewan’s exemptions are set out in the Enforcement of Money Judgments Act.
| Asset | Exemption limit |
|---|---|
| Clothing and jewellery | Up to $7,500 |
| Medical and dental aids | No limit |
| Household furniture and appliances | No limit |
| Domestic pets | Up to $2,000 |
| One motor vehicle | Up to $10,000 |
| Tools of the trade | No limit |
| Prepaid funeral services or burial plots (you, your dependants, or family) | Exempt |
| Principal residence equity (sole owner) | Up to $50,000 |
| Principal residence equity (jointly owned by spouses) | Up to $100,000 |
| RRSPs (except last 12 months), RRIFs, and certain pension plans | Exempt |
| Some life insurance policies | Exempt |
Saskatchewan farming exemptions
| Asset | Exemption limit |
|---|---|
| Cash or crops for food and fuel until next harvest | As needed |
| Livestock, farm machinery, equipment (including one car or truck) | Up to 12 months of operations |
| Tools of the trade | Up to $20,000 |
| Seed | 2 bushels per acre of land |
Saskatchewan has the most generous home equity exemption in Canada. The $50,000 limit doubles to $100,000 for jointly owned homes.
What can you keep in bankruptcy in Yukon?
Yukon’s exemptions are set out in the Exemptions Act.
| Asset | Exemption limit |
|---|---|
| Household furniture, utensils, and equipment | Up to $200 |
| Clothing (you and your family) | No limit |
| Food, fuel, and other necessities of life | 12 months’ supply |
| Livestock, fowl, bees, books, tools, implements, and other chattels for your business | Up to $600 |
| Principal residence equity | Up to $3,000 |
| Medical and health aids (you and your family) | No limit |
| RRSPs (except last 12 months) and pension plans | Exempt |
| Life insurance (beneficiary is spouse, child, grandchild, or parent) | Exempt |
Yukon has the lowest exemption limits in Canada. Household goods are protected to only $200 and home equity to $3,000. If you own anything of real value, a consumer proposal is almost certainly the better option.
Can you keep your home in bankruptcy?
Whether you keep your home in bankruptcy depends on your province’s exemption limit and your home equity.
If your home equity is within the exemption limit, your home is protected. If your equity exceeds the limit, you pay the difference into your bankruptcy estate to keep the home, or the trustee sells it.
If you have no equity because you owe as much as the home is worth, selling would not pay creditors anything. In that case, the home is not an asset the trustee would pursue. If you have substantial equity, bankruptcy becomes expensive. A consumer proposal lets you keep your home and all your equity while paying back a portion of your unsecured debt over up to five years.
Frequently asked questions
Do I lose everything when I file for bankruptcy?
No. Every province protects the essentials: clothing, household goods, a vehicle and the tools you need to work. Federal law also protects your RRSPs (bar the last 12 months of contributions), RRIFs and RDSPs. Most consumer bankruptcies are no-asset cases, so they keep everything they own.
Are RRSPs protected in bankruptcy?
Yes. RRSPs and RRIFs are federally exempt under the Bankruptcy and Insolvency Act. The one exception is contributions made in the 12 months before you filed. Those get clawed back for your creditors. TFSAs and most non-registered investments are not protected.
What happens to my car in bankruptcy?
You keep one vehicle as long as its equity is within your province’s exemption limit. If the vehicle is worth more than the limit, you pay the difference to your trustee or surrender it. If the car is financed or leased and you’re current on the payments, you usually keep it.
What happens to my tax refund in bankruptcy?
Your trustee files a return for the period from January 1 to your filing date, and any refund from that period, plus refunds owing from earlier years, goes to your creditors. You keep your GST/HST credit and Canada Child Benefit.
What if my assets exceed the exemption limits?
You have two choices. You can pay the difference between your assets’ equity and the exemption limit into your bankruptcy estate. Or you can file a consumer proposal instead, which lets you keep all your assets while repaying a portion of your debt.
Do exemption limits change over time?
Yes. Provinces update their amounts regularly. Always confirm the current figure for your province with a Licensed Insolvency Trustee before making any decisions.
Talk to a trustee about what you’d keep in bankruptcy
A Licensed Insolvency Trustee can work out the equity in each of your assets, tell you which exemptions apply in your province, and show you whether a bankruptcy or a consumer proposal protects more of what you own. The initial consultation is completely free.
