Manitoba Bankruptcy Exemptions
Manitoba Exempt Property in Bankruptcy
The property exempt from seizure is known as the bankruptcy exemptions in Manitoba and is set by the province.
It applies to the equity in the asset.
Equity refers to the value of an asset over any liens or debts owed against the asset.
As an example, if you have tools used in your trade or profession worth $10,000 and there is a $3,000 secured debt owed against the tools, the tools have an equity of $7,000.
The bankruptcy exemption for tools of the trade in Manitoba is $7,500, and since the equity in the tools is less than the allowed exemption you would be able to keep your tools in the case you decide to go bankrupt.
The List of Manitoba Bankruptcy Exemptions:
• Furniture, household furnishings and appliances not exceeding total value of $4,500;
• One motor vehicle, if necessary for work or transportation to and from work, not exceeding $3,000 in value;
• Actual residence of the bankrupt, equity of $1,500 each if in joint tenancy, or $2,500 if not in joint tenancy;
• Tools, implements, professional books and other necessaries not exceeding a total value of $7,500 used in practice of trade, occupation or profession;
• Necessary and ordinary clothing of the debtor and family;
• Health aids, including wheelchair, air conditioner, elevator, hearing aid, eye glasses, prosthetic or orthopaedic equipment, necessary to debtor or family;
• RRSPs, Registered Retirement Income Funds (RRIFs) and Deferred Profit Sharing Plans (DPSPs);
• Certain life insurance policies;
• Food and fuel necessary to family for period of six months or cash equivalent.
If debtor is a farmer:
• Animals necessary for farming operation for 12 months;
• Farm machinery, dairy utensils and farm equipment necessary for ensuing 12 months;
• 1 motor vehicle required in the use of agricultural operations;
• Any 160 acres of farm land upon which the debtor or his family resides, or which he cultivates or uses for grazing or other purposes, as well as all the buildings thereon;
• Seed sufficient to seed all land of debtor under cultivation.