Exempt Assets For Farmers Filing For Bankruptcy In Saskatchewan

What You Can Keep in a Saskatchewan Farm Bankruptcy

Farmers in Saskatchewan who are considering filing for bankruptcy, understanding the exemptions available to them can be helpful. These exemptions can protect certain assets from being taken by creditors. Here’s an overview of the Exempt Assets For Farmers Filing For Bankruptcy In Saskatchewan.

Necessary and Ordinary Clothing

Farmers are allowed to keep their necessary and ordinary clothing. This includes clothes that are required for their day-to-day activities and those that are deemed necessary for their profession.

Furniture, Household Furnishings and Appliances

Farmers are permitted to keep household furnishings and appliances up to a maximum value of $10,000. This means that items such as your couch, refrigerator, and bed may be exempt.

Produce of the Farm

Farmers are allowed to keep sufficient produce from their farm to provide food and fuel for their family until the next harvest. This ensures that the farmer and their family can sustain themselves.

Livestock, Farm Machinery and Equipment

All livestock, farm machinery, and equipment necessary to carry on operations for the next 12 months are exempt. This includes one automobile that is reasonable necessary for the farming operations.

One Motor Vehicle

Farmers can keep one motor vehicle (not in addition to the one included in the farm machinery and equipment) that is necessary for their job, profession or calling.

Professional Books

Exemptions are also available for books related to a profession practiced by the farmer. This allows farmers to retain the necessary resources to continue their profession.

Tools of the Trade

Tools of the trade up to the extent of $4,500 are exempt. This allows farmers to keep the necessary tools required for their trade.

Equity in a Principal Residence

Farmers can claim exemptions for equity in their principal residence up to the value of $32,000.

Seed Grain and Crop

Farmers are permitted to keep seed grain equal to two bushels per acre and crop sufficient to pay all costs of harvesting, necessary costs of operating the farm and all living expenses until the next harvest.

The Homestead

The homestead is exempt. A farmer may be able to claim both a principal residence and a homestead, but he must live on the homestead for at least part of the year in that case.

Trailer Used as a Principal Residence

A trailer used as a principal residence is exempt, but not in addition to the principal residence or homestead.

Right to First Refusal and/or to Lease Farmland

Farmers have the right to first refusal and/or to lease farmland that has been taken by a secured creditor.

Pensions, Insurance Policies and Retirement Plans

Most pensions, insurance policies (but not the cash surrender value), and most RRSP’s, RRIF’s and DPSP’s (although contributions made in the last few years may not be exempt) are also exempt.

Notes

  • Only one car/truck can be exempt.
  • Land other than the homestead (home quarter) is not exempt.
  • Only individuals get exemptions, corporations do not.
  • Certain types of security can survive a bankruptcy, notwithstanding that there are no assets to attach at the date of bankruptcy.
  • Claims for exemption will not succeed against what is commonly termed “Bank Act” security.

Conclusion

Understanding the exemptions available to farmers in Saskatchewan who are filing for bankruptcy can help them make more informed decisions about their financial future. It’s recommended that farmers consult with insolvency professionals for a more detailed understanding of their situation.

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