Exemptions

Debtors will receive a notice that explains that certain property may be exempt from seizure and a form to be used to make an exemption claim. The Sheriff must consider any exemption claim and make a decision about whether the property should be exempt. The debtor will be informed of the decision and can appeal to the court if they do not agree with it.

If a debtor's wages are seized, the greater of 70% of the wages per month or $1500 per month plus $300 per month for each dependant are exempt from seizure. A debtor can apply to court to have this exemption amount increased because of special circumstances and a creditor can apply to have it decreased based on the amount of other exempt property the debtor has to support themselves and their family.

If money in an account is seized the debtor can keep up to $1500 plus $300 for each dependant, if the money is needed to support the family for the next month. In deciding if the money is needed for the support of the family the amount of exempt wages the debtor is entitled to in that month is considered.

The Sheriff cannot seize money owing to the debtor from most federal and provincial social programs. Examples of funds that cannot be seized include employment insurance benefits, social assistance payments, income tax refunds and federal pensions such as old age pensions and the Canada Pension Plan. However, if the debtor deposits the money from these cheques the money in the account can be seized. Money in a Registered Retirement Savings Plan is also exempt.

The following property is exempt from seizure...

• clothing, including jewellery up to a value of $7500
• medical and dental aids or other devices required or ordinarily used by the debtor or a dependant of the debtor due to physical or mental disability
• household furnishings, utensils, equipment and appliances (However, if the value of these items is significantly more than what they would usually cost, the creditor can apply to court to have these items sold. The debtor would be given enough money from the process of the sale to replace these items with lower cost items.)
• pets up to a value of $2000
• one motor vehicle up to a value of $10,000 (if there is more than one vehicle the debtor can choose one)
• items, other than a motor vehicle, required to earn income for the support of the debtor and his or her dependants (However, if the value of these items is significantly more than what they would usually cost, the creditor can apply to court to have these items sold. The debtor would be given enough money from the process of the sale to replace these items with lower cost items.)
• money or property received as legal compensation for physical or mental injury that is being used or will be used to meet the reasonable and ordinary living expenses of the debtor and his or her dependants or to provide medical or other care facilities for the debtor or his or her dependants
• prepaid funeral services or a burial plot for the debtor or a member of the debtor's family
• any property that is of such a low value that the Sheriff believes that the costs of seizure and sale are likely to be approximately equal to or greater than the amount of the proceeds from a sale
• interest in one house, house trailer or equivalent facility and the land on which it is permanently situated, with a value that does not exceed $50,000 if the debtor does not live there and with a value up to an unlimited amount if the debtor is living there
• If a debtor sells exempt property the debtor can keep the proceeds to replace the exempt item. The proceeds remain exempt for up to 6 months provided they are kept separately from the debtor’s other money.
• In the case of household furnishings, utensils, equipment or appliances or property required to earn income, the Sheriff will determine the amount the debtor can keep to replace those items.