Saskatchewan Bankruptcy Exemptions

Property You Can Keep When Filing Bankruptcy

The property listed under the Saskatchewan bankruptcy exemptions are the equity in assets that can be kept when a bankruptcy is filed.

Equity is the excess of the value of an asset has over any charges or encumbrances that are owed against that asset.

For an example of how the Saskatchewan bankruptcy exemptions work please consider this situation:

You have a motor vehicle that is valued at $15,000 and there is a $6,000 secured debt that you owe against the vehicle, resulting in equity of $9,000 in the vehicle.

The insolvency exemptions in Saskatchewan allows an insolvent individual to keep a car with equity of $10,000.

Since the equity in the vehicle ($9,000) is less than the SK bankruptcy exemption for a motor vehicle ($10,000) you would be able to keep this vehicle.

Saskatchewan Bankruptcy Exemptions are:

Saskatchewan Bankruptcy Exemptions For Non-Farmers:

  • Effective May 28, 2012 the Enforcement of Money Judgements Act is proclaimed in effect in Saskatchewan. It includes a number of significant changes affecting non farmers.
  • The Amounts That Can Be Garnisheed From Your Pay – a judgement creditor can now garnishee an amount that exceeds the greater of 70% of your pay or $1,500 plus $300 per dependent.

The Assets You Can Keep (per person)

  • Clothing, including jewellery, up to $7,500 in value;
  • Medical and Dental aids required;
  • Household furnishings;
  • Pets up to a value of $2,000;
  • One motor vehicle up to $10,000;
  • Personal Property required to earn income;
  • Funds that were received as the result of compensation for injury;
  • Prepaid Funeral Services;
  • The Homestead;
  • Equity in your Active Residence (including trailers) up to $50,000;
  • Most RRSPs, RRIFs and Pensions.

Saskatchewan Bankruptcy Exemptions For Farmers:

  • Furniture, furnishings and appliances to a value of $10,000;
  • The cash equivalent of produce sufficient to provide food and fuel for heating until the next harvest;
  • All livestock, farm machinery and equipment, including one car or truck, necessary for the next twelve months operations;
  • One motor vehicle, if required for business or profession, but not in addition to the one above;
  • Tools and equipment to a value of $4,500 used by a farmer in his trade or profession;
  • Equity in personal residence to a value of $32,000 ($64,000 if jointly owned) to a maximum of $128,000 if held by four parties;
  • Seed grain equal to two bushels per acre of land under cultivation;
  • RRSPs, RRIFs and DPSPs are exempt from seizure;
  • Certain life insurance policies;
  • Cash equivalent of crop equal to:
    • unpaid harvesting costs;
    • living expenses to next harvest;
    • necessary costs of farming until next harvest.