Alberta Bankruptcy Laws

Alberta Bankruptcy laws are meant to permit an honest debtor to obtain a discharge from his or her debts while treating creditors equally and fairly.

The bankruptcy laws are governed by the Canada Bankruptcy Act.

Assets You Can Keep in Bankruptcy - Alberta

In Alberta, what you are entitled to keep is determined by the Civil Enforcement Act. In summary, you are generally able to keep the following property:

• Food required by you and your dependents during the next 12 months.

• Necessary clothing up to a value of $4, 000

• Household furnishings and appliances to a value of $4, 000

• One motor vehicle not exceeding a value of $5, 000 (equity)

• Medical and dental aids required by you and your dependents.

• The equity in your principal residence, including a mobile home, up to a value of $40,000. If you are a co-owner of the residence, the amount of the exemption is reduced to an amount that is proportionate to your ownership interest. Personal property (i.e., tools, equipment, books) that you require to earn income from your occupation up to a value of $10,000.

• Where you are a bona fide farmer and your principal source of livelihood is farming: 160 acres if your principal residence is located on that 160 acres and the 160 acres is part of your farm.

• Where your primary income is from farming operations, personal property that you require for the proper and efficient conduct of your farming operations for the next 12 months.