Alberta Bankruptcy Exemptions

Alberta Bankruptcy Trustees

Alberta Bankruptcy Exemptions

Alberta bankruptcy exemptions are set by the province of Alberta.  The philosophy is that debtors should be left with some assets to maintain dignity and to aid the debtor in getting back on his feet.

Alberta bankruptcy exemptions are based on the value of the the equity in the assets. Equity is the value an item has once all of the encumbrances and charges against the asset are considered.

As an example, let’s say you have a car that is worth $7,000 which has a $3,000 loan against it.   In this case, you have equity of $4,000 in the car.  The Alberta bankruptcy exemption for a motor vehicle is $5,000.  Therefore, you are able to keep the vehicle and the unsecured creditors cannot touch this asset.

Alberta Bankruptcy Exemptions:

• 12 months of necessary food for the debt and their dependents;

• $4,000 of necessary clothing for the debtor and his/her dependents;

• $5,000 of equity in one motor vehicle;

• Homestead exemption to $40,000 (reduced in the case of debtor being a co-owner proportionate to the level of debtor’s ownership);

• The debtor’s principal residence to 160 acres (if the acreage is part of the farm of the debtor);

• Household furniture and appliances = $4,000.00;

• Medical and dental aids of the debtor and his/her dependents, (in the case of the debtor being a bona fide farmer (principal source of livelihood is farming));

• $10,000 of equipment, books, tools or other property used to earn an income for the debtor;

• 12 months of personal property required for efficient and proper operation of farming operations (in the case farming operations are the debtor’s primary income source);

• Deferred Profit Sharing Plans (DPSPs), Registered Retirement Savings Plans RRSPs, Registered Disability Savings Plans (RDSP), and Registered Retirement Income Funds (RRIFs).


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