canada bankruptcy exemptions

British Columbia (BC) - Court Order Enforcement Act/Insurance Act

**capital region – Vancouver, Surrey, Burnaby, Richmond, Coquitlam, Langley, Delta, North Vancouver, Maple Ridge, New Westminster, Port Coquitlam, West Vancouver, Port Moody, Langley, White Rock, Pitt Meadows, Bowen Island, Anmore, Lions Bay, Tsawwassen, Belcarra, Saanich, Central Saanich, North Saaanich, Victoria, Langford, Oak Bay, Esquimalt, Colwood, Sooke, Sidney, View Royal, Metchosin, Salt Spring Island, Juan De Fuca, Southern Gulf Islands

Alberta (AB) - Civil Enforcement Act/Insurance Act

Saskatchewan (SK) - The Enforcement of Money Judgments Act/The Saskatchewan Insurance Act

Manitoba (MB) - Execution Act/Insurance Act

Ontario (ON) - Execution Act/Insurance Act

Quebec (QC) - Asset Exemptions In Bankruptcy

New Brunswick (NB) - Asset Exemptions In Bankruptcy

Prince Edward Island (PE) - Asset Exemptions In Bankruptcy

Nova Scotia (NS) - Asset Exemptions In Bankruptcy

Newfoundland & Labrador (NL) - Asset Exemptions In Bankruptcy

Nunavut (NU) - Asset Exemptions In Bankruptcy

Northwest Territories (NWT) - Asset Exemptions In Bankruptcy

Yukon (YU) - Asset Exemptions In Bankruptcy

Federal Exemptions (Does not Constitute Property of the Bankrupt) – BIA/ ITA/Insurance Act

What Happens to My Earnings During Bankruptcy?  Surplus Income Defined.

No matter where you reside in Canada, the distribution of your earnings during bankruptcy is governed by the Federal Government Office of the Superintendent of Bankruptcy, and is determined by what is called Surplus Income.  Simply put, your income is compared to an amount called the Surplus Income Threshold, which sets the amount of take home income a person or a family needs for a reasonable standard of living, based on their family size and family situation. You get to keep everything up to this threshold amount.  For any income above the threshold, you are required to submit 50% of this excess income for the duration of your bankruptcy.

Surplus income will also determine the length of your bankruptcy. If a person has no surplus income and this is a first time bankruptcy, the federal government has regulated that a bankruptcy will be for a period of 9 months. If there is surplus income and it is greater than $200 over the threshold, a first time bankruptcy will be extended 12 months, for a total of 21 months.  A second bankruptcy with surplus income will be extended by 27 months, for a total of 36 months.

Surplus Income Threshold for 2019:

The monthly surplus income payment is calculated using the following formula:

Net Income after Deductions – Federal Threshold Amount = Surplus Income x 50% = Payment

Example: Jill lives by herself and takes a salary of $2,504 home per month. Here Surplus Income payment, using the formula above, would be: $2,503 (Take home income) – $2,203 (Threshold amount, based on a family size of one person) = $300 x .5 (Surplus income payment is based on 50% of any income over the threshold amount = $150 Therefore, Jill would be required to pay $150 every month in surplus income payments for the duration of her bankruptcy. If her income increases, she will be required to pay more, and if her income decreases, the amount she pays will be less.

Net Income is based on the total take home income of all family members living in the household of the bankrupt.

Deductions include: Child care payments, support payments, medical payments, and other employment expense that are normally deducted when preparing your income taxes.