Changes to Bankruptcy Law in Ontario Canada

Effective December 14, 2005, the Province of Ontario has amended the limits on the amounts for certain assets which are exempt from seizure by a trustee in a bankruptcy.

Basically the increases allows for inflation since they have not changed in the last 5 years.

The new values are:

• $5,650 worth of personal possessions (clothing, jewelry, sports equipment, etc.);
• $5,650 worth of motor vehicles (cars, trucks etc.);
• $11,300 worth of furnishings;
• $11,300 worth of tools of the trade (equipment that you use to earn a living); and certain types of life insurance.

Furthermore, when the new Bankruptcy rules come into effect during the summer of 2006, RRSPs will also be protected, with some exceptions.