If you’re thinking of filing for bankruptcy in Alberta, you may be wondering what kinds of exemptions apply.
This informative guide provides all the answers you need.
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What can I keep if I go bankrupt in Alberta?
It’s a common perception that you lose everything when you go bankrupt.
In reality, this is not the case.
There are exemptions in every part of Canada, and nobody filing for bankruptcy will have everything they own taken away from them.
The list of items and assets that are protected from bankruptcy varies in each province, but Canadians are shielded wherever they live.
The aim of bankruptcy is not to leave people with nothing, but to provide a stable platform for them to start rebuilding.
The list of exemptions ensures that every individual has the essentials they need to move in the right direction.
Personal insolvencies increased by 15% in Alberta in 2019.
If you are considering filing for bankruptcy in Alberta, it’s crucial to be aware of the exemptions permitted by law in this province.
Bankruptcy exemptions in Alberta are governed by the Civil Enforcement Act of Alberta, and they include:
- One motor vehicle up to the value of $5,000 (this value relates to equity)
- Household appliances and furniture up to the value of $4,000
- Clothing up to the value of $4,000
- Medical and dental equipment and aids for all household members
- Tools of the trade up to the value of $10,000 (this relates to any tools or equipment required to generate an income)
- Food for all household members for the next 12 months
- Equity in your primary residence up to the value of $40,000 (this equates to a share of the ownership if the property is owned by more than one person)
- Registered investments, including a Registered Retirement Savings Plan (RRSP), a Registered Disability Savings Plan (RDSP) and a Registered Retirement Income Fund (RRIF)
Is filing for bankruptcy the right option for me?
If you’re considering filing for bankruptcy in Alberta, it is critical to seek advice and to understand all the options open to you.
In many cases, there are steps you can take to clear or reduce debts and eliminate the stresses of receiving calls or letters from creditors before deciding upon bankruptcy.
Working with credit counsellors and exploring different ways out of debt can help you manage your money more effectively and decide which avenue is best for you.
Bankruptcy can be a suitable option for some people, but there are often alternatives, for example, a consumer proposal.
Our expert team is on hand to provide advice and answers based on your individual circumstances.
The aim is to identify a way to help you improve your financial situation and work towards a stable future.
Summary
Many people think that going bankrupt means losing everything.
In reality, there is an extensive list of exemptions, and if you go bankrupt in Alberta, you’ll be able to keep a host of assets and necessities to help you rebuild and look forward.
If you have any questions about what you can keep when filing for bankruptcy in Alberta, or you need advice, don’t hesitate to get in touch.
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