Bankruptcy in BC Property Exemptions

When you file an assignment in bankruptcy, all of your assets vest in the bankruptcy trustee for the benefit of your creditors.  However, each province in Canada has laws governing which assets a bankrupt may retain to maintain a reasonable standard of living.  The Court Order Enforcement Act sets out the property exemptions for an individual claiming bankruptcy in BC.

The bankruptcy in BC exemptions are:
  • $12,000 equity in a principal residence in Greater Vancouver or the Capital Regional District; and $9,000 equity in all other areas of BC;
  • $5,000 equity in one motor vehicle (but only $2,000 if you are behind in family support obligations);
  • $4,000 in household furnishings;
  • $10,000 in work tools;
  • All necessary clothing and medical aids; and
  • Property in a registered plan (RRSP, RRIF or DPSP), except those contributions made in the 12 month period prior to bankruptcy.

Video:  Assets Exempt from Bankruptcy in BC

For more information about assets and bankruptcy, speak with a Licensed Insolvency Trustee.