The Provincial Exemption Limits for Keeping Your House When Going Bankrupt
The amount of net equity you’re allowed to have to keep your home and still go bankrupt depends on which province you live in. Here’s what the exemption limits are:
You’re permitted to have up to $40,000 in equity if you completely own your home. If you are a co-owner, then the equity you’re permitted is reduced proportionately by the percentage of the home that you own. So if you’re 50% owner, your equity exemption would be $20,000. If you’re a 33.3% owner, then your equity exemption would be $13,320.
You’re allowed to have $12,000 in equity in Vancouver and Victoria, but only $9,000 all other areas of the province.
You can have up to $1,500 in equity if you jointly own the home with someone else. If you are the sole owner of the home, you’re allowed to have up to $2,500 in equity.
You’re permitted to have up to $10,000 equity in your principal residence.
You’re allowed up to $50,000 equity in your active residence per owner on title (and this could even be a trailer). Unsecured creditors also cannot force the sale of your home.
Unlike in other provinces, there is no amount of equity in your home that is exempt from bankruptcy. However, your main residence is considered unseizeable if the claim against you is for less than $20,000 (with some exceptions).