Will I Lose My House or Car?" Asset Exemption Estimator
Check your provincial statutory asset exemptions and discover how Canadian insolvency laws protect your primary residence, vehicle, and personal property.
Under the Bankruptcy and Insolvency Act (BIA), individual provincial laws determine how much home equity and vehicle equity you can legally keep. Calculate your exact provincial exemption thresholds below.
Asset Exemption & Equity Protection Estimator
Impact in Personal Bankruptcy
Impact in Consumer Proposal
- Zero Asset Seizure: You keep your home and car automatically regardless of the equity amount.
- Flexible Repayment: Any non-exempt equity is spread out over a 1 to 5-year monthly proposal payment plan.
- Secured Contracts Intact: Your mortgage and car loan stay in place as long as payments are kept current.
Provincial Statutory Exemption Limits Across Canada
When you file for insolvency in Canada, federal law respects provincial execution exemption limits. Each province sets its own baseline limits for how much equity you can protect in your primary residence, vehicle, household goods, and tools of trade.
| Province / Territory | Primary Residence (Home Equity) | Motor Vehicle Equity | RRSP / Retirement Savings |
|---|---|---|---|
| Ontario | $12,997 (Full exemption if equity $\le$ limit) | $8,578 | 100% Protected (Except last 12 mos) |
| Alberta | $40,000 ($20,000 for co-owners) | $5,000 | 100% Protected (Except last 12 mos) |
| British Columbia | $12,000 (Metro/Capital) / $9,000 (Other) | $5,000 | 100% Protected (Except last 12 mos) |
| Quebec | $20,000 baseline threshold | $10,000 | 100% Protected (Except last 12 mos) |
| Saskatchewan | $50,000 | $10,000 | 100% Protected (Except last 12 mos) |
Consumer Proposal vs. Bankruptcy: How Assets Are Treated
In Personal Bankruptcy
If your home equity or car equity exceeds your provincial exemption limit, you have two options:
- Buy Back the Equity: Pay the non-exempt equity amount into your bankruptcy estate over time so the Trustee does not sell the asset.
- Surrender the Asset: Allow the Trustee to sell the asset, pay off secured debt (mortgage/car loan), retain your statutory exemption, and distribute the remaining proceeds to unsecured creditors.
In a Consumer Proposal
You retain 100% ownership of all your property. The Trustee never takes or sells your home or vehicle.
- Your proposal offer simply ensures creditors receive at least as much as they would in a hypothetical bankruptcy.
- You keep making your regular mortgage and car payments directly to your lenders without interruption.
Frequently Asked Questions
Your mortgage is a secured loan, meaning a Consumer Proposal does not alter your mortgage contract. As long as your mortgage payments remain current, Canadian banks routinely renew mortgages upon term completion during a Consumer Proposal.
Under federal law, RRSPs, RRIFs, and registered pensions are 100% exempt from seizure in bankruptcy across all Canadian provinces (except for contributions made in the 12 months immediately prior to filing). TFSAs, however, are not exempt under provincial execution acts and are treated as available cash equity in bankruptcy.
If you owe more on your auto loan or lease than the vehicle is worth (negative equity), there is zero equity for the Trustee to claim, meaning you keep the vehicle as long as you keep making payments. If you have positive equity, only the net equity (Market Value minus Outstanding Loan) is evaluated against provincial exemption limits.
Find Your Personal Debt Relief Solution
Licensed Insolvency Trustees are here to help. Get a free assessment of your options.
Legally Cut Your Debt By 80% And Stop Interest Charges
Stop Interest Charges Immediately
Unfreeze Bank Accounts
Stop Wage Garnishment
Stop Legal Actions
