BC Bankruptcy Exemptions: Assets You can Keep When Filing Bankruptcy

What can I Keep When Going Bankrupt?

Here is an example of how BC bankruptcy exemptions work in the case of a home that is the principal residence.

For example, if you have a home worth $400,000 which has a $392,000 secured debt on it (Mortgage, Real Estate Commission and property taxes) then the equity in the home is $8,000.

In BC the exemption for a home in Greater Vancouver and Victoria is $12,000.

In the rest of the province the exemption is $ 9,000.

So in this example you are allowed to keep this equity of $8,000 and the unsecured creditors cannot take this.

BC Bankruptcy Exemptions are:

  • Equity in a home in Greater Vancouver and Victoria = $12,000.

    In the rest of the province = $9,000;

  • Equity in Household items = $4,000;
  • Equity in a vehicle = $5,000; The vehicle exemption drops to $2,000 if the debtor is behind on child care payments (to facilitate the enforcement of Maintenance Orders);
  • Equity in work tools = $10,000;
  • Exemptions are in effect for all registered retirement savings plans (RRSP’s, RRIF’s and DPSP’s (Deferred Profit Sharing Plans).

    However, any Contributions that were deposited within the 12 months prior to going bankrupt will be recovered (clawed back) and given to the insolvency estate.

  • Equity in essential clothing and medical aids is unlimited.