What You Keep After Filing for Bankruptcy

Many people think that when filing for personal bankruptcy, you lose everything. This is not the case.

There are some assets you can keep, even after filing for bankruptcy (these are known as exempt assets under federal and provincial laws). Such assets may include equity in your home, your vehicle, RRSPs, household possessions, medical aids, personal items and equipment needed for work. What you can keep changes from province-to-province . Your Licensed Insolvency Trustee will explain what specific assets you can keep based on the province you live in. ​

It is also possible to keep assets financed by a secured loan such as your home and car, as long as you continue to make mortgage and car loan payments.​

For any assets that are non-exempt, you may have the option to buy back the assets by paying the estate the value of the asset. For example, if you owned a boat valued at $1,000 and wanted to keep it, you could pay your Licensed Insolvency Trustee that exact same amount in order to hang onto the asset. Alternatively, the Licensed Insolvency Trustee will sell the asset to a third party in order to obtain the funds relating to this non-exempt asset. Whether you or another purchaser obtains your non-exempt assets, the proceeds from those sales will go into your bankruptcy estate for the benefit of your unsecured creditors. ​

Life-Changing Debt Solutions are not about what you have to give up, they are about ensuring your financial future.​

To learn more about what you get to keep after declaring bankruptcy in all provinces across Canada, please click here


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