What Can I Keep In A Bankruptcy In Manitoba

The debt load is now overwhelming. This is not where you thought you would ever find yourself. After trying everything you can think of to manage it, you see no light at the end of the tunnel and you know it’s time to consult with a Licensed Insolvency Trustee about your options. It’s possible that filing for bankruptcy might be your best option. You are concerned though, because the last thing you want is to lose everything. Sound familiar?

The good news is the process is not intended to cause an honest but unfortunate debtor undue hardship and there are asset exemptions both federally and specific to the province of Manitoba, that protect certain assets from seizure.

The Executions Act of Manitoba provides that the following assets are exempt from seizure:

• Furniture, household furnishings and appliances not exceeding a total value of $4,500;
• Necessary and ordinary clothing of the debtor and family;
• Food and fuel necessary to family for a period of six months or cash equivalent;
• Tools, implements, professional books and other necessaries not exceeding a total value of $7,500 used in the practice of trade, occupation or profession;
• One motor vehicle, if necessary for work or transportation to and from work, not exceeding $3,000 in value;
• Health aids, including wheelchair, air conditioner, elevator, hearing aid, eye glasses, prosthetic or orthopedic equipment, necessary to the debtor or family;
• Actual residence of the bankrupt, equity of $1,500 each if in joint tenancy, or $2,500 if not in joint tenancy;
• Articles and furniture necessary to the performance of religious services;
• The chattel property of the City of Winnipeg or of any municipality, local government district, school division or school area in the province.

For Farmers:

• Animals necessary for farming operation for the ensuing 12 months;
• Farm machinery, dairy utensils and farm equipment necessary for the ensuing 12 months;
• One motor vehicle if required for purposes of agricultural operations;
• Home quarter;
• Seed sufficient to seed all land of the debtor under cultivation.

The Registered Retirement Savings Protection Act of Manitoba provides that in respect of RRSP’s, RRIF’s and DPSP’s, all rights, property and interest of a plan holder in such registered plans are exempt from any enforcement process.

Certain life insurance policies are exempt from seizure as long as the beneficiary (or beneficiaries) is a parent, spouse or child.

Confronting your debt can be overwhelming. It’s important to have a thorough understanding of all the options available to you and the impact they may have. If you find that your current debt load obligations and on-going living expenses don’t align with your income, MNP Ltd. is here to help. A free, no-obligation consultation with a Licensed Insolvency Trustee can give you the information you need and the peace of mind necessary to choose the best route for you as you work towards a stronger financial future.