Can I Keep My Assets? Saskatchewan Bankruptcy Exemptions
What Can I keep if I go bankrupt in Saskatchewan?
While it might sound too good to be true you can keep some of your possessions when you go bankrupt in Saskatchewan, known as the bankruptcy exemptions.
These assets are called bankruptcy exemptions, because they are exempt from seizure by your Licensed Insolvency Trustee.
Saskatchewan Bankruptcy Exempt Assets
The Saskatchewan exemptions apply to the equity in the asset, which is the value of the asset when all liabilities are deducted from the value of the asset. The assets you can keep when going bankrupt in Saskatchewan 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
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
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.
As you can see you do not lose everything when you file for bankruptcy in Saskatchewan.
In fact, most debtors filing for bankruptcy in Saskatchewan, are able to keep a wide variety of property.
If you would like to speak with a professional about how the Saskatchewan bankruptcy exemptions would impact your situation the best thing for you to do is to schedule a time to review your assets with a licensed Saskatchewan Bankruptcy Trustee.
They will be able to advise you what assets you can keep should you file for bankruptcy.
Why are some assets exempt?
Bankruptcy is a process that allows an honest but unfortunate debtor to get a fresh financial start.
However, to achieve the fresh financial start, you need to keep some dignity and some essential assets as a starting point for you and your family to rebuild your financial lives.
These essential assets are your bankruptcy exemptions, and are defined in the law.
What about my bank account?
Your bank account is not an exempt asset in bankruptcy.
However, you should carefully arrange your banking in bankruptcy, to ensure that no inappropriate payments go to your creditors.
You can keep your dignity, but exemptions are complicated
If you file for bankruptcy, you can keep some assets that are essential for you to live your life, provide for your family, and make a living.
Exactly what you can keep depends on your personal circumstances.
Bankruptcy exemption rules are complicated, and change from time to time. Professional advice is essential.
You could keep all your assets (and avoid the matter of exemptions) by filing a consumer proposal – a negotiated settlement between you and your creditors.
Although this option costs more than a bankruptcy, it may help reduce your feelings of guilt.
For more details on bankruptcy exemptions in Saskatchewan and for answers to your other questions about bankruptcy and consumer proposals, please contact our personal Licensed Insolvency Trustee in your area and arrange for an initial consultation, free of charge.
This federally-licensed professional will examine all the circumstances of your case and advise you on the options available to you.