Some of these include:

o The cash surrender value of life insurance policies (including some R.R.S.P.'s) where the beneficiary named is the spouse, child, parent or grandchild.
o Generally, pension plans, presuming they are locked in and not accessible until retirement.
However, there are a few things that are important to note:
o For an exemption to be valid you must claim the exem

Many people believe that if you file bankruptcy in Alberta you will automatically forfeit any assets that you own. This is simply not true. The Bankruptcy and Insolvency Act provides that certain property can be protected from such a seizure, and allows the specific items to be set by provincial legislation.

In Alberta, the Civil Enforcement Act specifies what you may keep. According to this legislation each debtor is able to claim the following exemptions:

o Food required by you and your dependents during the next 12 months.
o Necessary clothing for you and your dependents of up to a value of $4,000
o Household furnishings and appliances to a value of $4, 000
o Equity in one motor vehicle not exceeding $5, 000
o Medical / dental aids required by you and your dependents.
o Where you are a bona fide farmer and your principal source of livelihood is farming you are permitted 160 acres if your principal residence is located on that 160 acres and that 160 acres is part of your farm.
o The equity in your principal residence, including a mobile home, up to a value of $40,000. However, if the property is co-owned, the amount of the exemption is reduced by your share of the ownership interest.
o Personal property (i.e. tools, equipment, supplies) required for due to your employment up to a value of $10,000.
o Where your principle income is from farming, any personal property that you require to effectively run the farming operations for the next 12 months.

There are also a variety of other exemptions that are permitted under various Federal statutes. Some of these include:

o The cash surrender value of life insurance policies (including some R.R.S.P.'s) where the beneficiary named is the spouse, child, parent or grandchild.
o Generally, pension plans, presuming they are locked in and not accessible until retirement.
However, there are a few things that are important to note:
o For an exemption to be valid you must claim the exemp

ation each debtor is able to claim the following exemptions:

o Food required by you and your dependents during the next 12 months.
o Necessary clothing for you and your dependents of up to a value of $4,000
o Household furnishings and appliances to a value of $4, 000
o Equity in one motor vehicle not exceeding $5, 000
o Medical / dental aids required by you and your dependents.
o Where you are a bona fide farmer and your principal source of livelihood is farming you are permitted 160 acres if your principal residence is located on that 160 acres and that 160 acres is part of your farm.
o The equity in your principal residence, including a mobile home, up to a value of $40,000. However, if the property is co-owned, the amount of the exemption is reduced by your share of the ownership interest.
o Personal property (i.e. tools, equipment, supplies) required for due to your employment up to a value of $10,000.
o Where your principle income is from farming, any personal property that you require to effectively run the farming operations for the next 12 months.

There are also a variety of other exemptions that are permitted under various Federal statutes. Some of these include:

o The cash surrender value of life insurance policies (including some R.R.S.P.'s) where the beneficiary named is the spouse, child, parent or grandchild.
o Generally, pension plans, presuming they are locked in and not accessible until retirement.
However, there are a few things that are important to note:
o For an exemption to be valid you must claim the exem

.
o Where you are a bona fide farmer and your principal source of livelihood is farming you are permitted 160 acres if your principal residence is located on that 160 acres and that 160 acres is part of your farm.
o The equity in your principal residence, including a mobile home, up to a value of $40,000. However, if the property is co-owned, the amount of the exemption is reduced by your share of the ownership interest.
o Personal property (i.e. tools, equipment, supplies) required for due to your employment up to a value of $10,000.
o Where your principle income is from farming, any personal property that you require to effectively run the farming operations for the next 12 months.

There are also a variety of other exemptions that are permitted under various Federal statutes. Some of these include:

o The cash surrender value of life insurance policies (including some R.R.S.P.'s) where the beneficiary named is the spouse, child, parent or grandchild.
o Generally, pension plans, presuming they are locked in and not accessible until retirement.
However, there are a few things that are important to note:
o For an exemption to be valid you must claim the exem

of the ownership interest.
o Personal property (i.e. tools, equipment, supplies) required for due to your employment up to a value of $10,000.
o Where your principle income is from farming, any personal property that you require to effectively run the farming operations for the next 12 months.

There are also a variety of other exemptions that are permitted under various Federal statutes. Some of these include:

o The cash surrender value of life insurance policies (including some R.R.S.P.'s) where the beneficiary named is the spouse, child, parent or grandchild.
o Generally, pension plans, presuming they are locked in and not accessible until retirement.
However, there are a few things that are important to note:
o For an exemption to be valid you must claim the exem

Some of these include:

o The cash surrender value of life insurance policies (including some R.R.S.P.'s) where the beneficiary named is the spouse, child, parent or grandchild.
o Generally, pension plans, presuming they are locked in and not accessible until retirement.
However, there are a few things that are important to note:
o For an exemption to be valid you must claim the exemption at the time of filing, failure to expressly do so can result in the seizure of the property not claimed as exempt.
o If you have pledged any of your assets as security for a loan, this overrides the exemptions. The only way you are able to keep the secured property is to make arrangements that are acceptable to the secured lender.
o If your assets increase in value between the filing of a bankruptcy and your discharge, and this increase in value exceeds the amount of the allowable limits, it will likely for the excess amount to be realized upon and distributed among your creditors.

If you should find your self in a position where you have property in excess of the allowable limits, this does not necessarily mean you will lose the asset in question. Arrangements can be made for you to repurchase assets directly from the bankruptcy estate (i.e. the trustee) or alternatively you may want to consider filing a consumer proposal. In a proposal there is no vesting of assets, no need to arrange any asset repurchase with your trustee, and you have the added benefit of a reduced impact on your credit.

For more information on how your assets will be treated in a bankruptcy, how a consumer proposal will impact your credit, or any other issue relating to money problems feel free to contact us through our Edmonton Bankruptcy website or call us directly at 780-435-5110.