Exempt Assets For Farmers Filing For Bankruptcy In Saskatchewan
2012-01-04 minute read
The following assets are exempt in Saskatchewan for farmers:
- Necessary and Ordinary Clothing
- Furniture, Household Furnishings and Appliances to a maximum value of $10,000
- Produce of the farm sufficient to provide food and fuel for the family until the next harvest
- All livestock, farm machinery and equipment, including one automobile, reasonable necessary to carry on operations for the next 12 months
- One motor vehicle (not in addition to the one above) necessary for the debtors job, profession or calling
- The books related to a profession practiced by the farmer
- Tools of the trade to the extent of $4,500
- Equity in a principal residence to the value of $32,000
- Seed Grain equal to two bushels per acre
- Crop sufficient to pay all costs of harvesting, necessary costs of operating the farm and all living expenses until the next harvest
- The homestead
- A trailer used as a principal residence, but not in addition to the principal residence or homestead
- The right to first refusal and/ or to lease farmland that has been taken by a secured creditor
- Pensions
- Most Insurance Policies (but not the cash surrender value)
- Most RRSP’s, RRIF’s and DPSP’s (although contributions made in the last few years may not be exempt)
Notes
1. A farmer may be able to claim both a principal residence and a homestead, but he must live on the homestead for at least part of the year in that case.
2. Only one car/ truck can be exempt.
3. Land other than the homestead (home quarter) is not exempt.
4. Only individuals get exemptions, corporations do not.
5. Certain types of security can survive a bankruptcy, notwithstanding that there are no assets to attach at the date of bankruptcy. You should consult with our insolvency professionals if any lender has a general security agreement over your assets.
6. Claims for exemption will not succeed against what is commonly termed “Bank Act” security.
Additional Resources
The interplay between exemptions and security is complex in a farm scenario and we strongly encourage you to consult with us in respect to your particular situation. For more information, please contact us or consult our Bankruptcy FAQ.
For non-farmers in Saskatchewan click here or see below for details on exempt assets in other Provinces:
