Bankruptcy, governed by the Bankruptcy & Insolvency Act, is federal law. What you can keep if you go bankrupt in Alberta (called exemptions); however, is governed by provincial legislation.
In Alberta, you are permitted to keep the following items:
1.
Food for the debtor and their family for the next 12 months.
2.
Household appliances and furnishings up to $4,000.
3.
Necessary clothing for debtor and their family for up to $4,000.
4.
Motor vehicle of $5,000 in value.
5.
Medical and dental aids required by the debtor or their family.
6.
Main residence of the debtor (including mobile homes) up to the value of $40,000.
7.
Personal Property used to earn income, up to value of $10,000.
8.
Handicap benefits, widow’s pension, and social allowances.
9
RRSP's, Registered Retirement Plans and RDSP's, Registered Disability Savings Plans
It is crucial to discuss your property with your Alberta bankruptcy trustee before filing for bankruptcy in Alberta. You should be completely clear on what you can keep if you go bankrupt in Alberta and which property you may lose if you go bankrupt in Alberta.
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