Ontario Protects Home Equity From Creditor Actions

KITCHENER, ON, Nov. 9, 2015 /CNW/ - Effective December 1, 2015, Ontario will increase thresholds for items that are protected from actions taken by a person's creditors, even when they file for bankruptcy. Changes to the Execution Act will also see the addition of a new exemption for home equity up to a maximum of $10,000.

The Ontario Execution Act defines the exemption of goods from seizure by creditors. It applies to creditors who have successfully sued a debtor and received a Writ of Seizure or Execution, and overrides the Bankruptcy & Insolvency Act. "The purpose behind the Act is to ensure that a debtor is not deprived of the necessities of life" said Ted Michalos, a bankruptcy trustee with Hoyes, Michalos & Associates Inc. "Ontario law has always exempted certain assets, within limits, including a motor vehicle, personal possessions and tools needed to earn a living, however, the dollar limits have not been increased since 2005."

The addition of an exemption for a specified amount of home equity brings Ontario legislation in line with other provinces including British Columbia, Alberta, Saskatchewan, Manitoba, Quebec and Newfoundland & Labrador. "The fear of losing one's home is one of the greatest concerns faced by individuals facing financial problems today" said Douglas Hoyes, a bankruptcy trustee with Hoyes, Michalos & Associates Inc. "While options like a consumer proposal can help families retain their home, this exemption will make bankruptcy or a consumer proposal less costly for many insolvent homeowners across Ontario."

The new limits under the Execution Act include:

  • Necessary clothing - unlimited
  • Household furnishings and appliances - $13,150
  • Motor vehicle - $6,600
  • Tools of the trade - $11,300
  • Livestock, tools for farmers - $29,100
  • Principal residence - $10,000 (new)


About Hoyes, Michalos & Associates, Inc.

Hoyes, Michalos & Associates Inc., a consumer proposal and trustee in bankruptcy firm with offices throughout Ontario, helps people in financial difficulty.  Further information is available at www.hoyes.com




Necessary and ordinary apparel - $5,650

Necessary clothing - no limit

Household furniture, utensils, equipment, food and fuel - $11,300

Household furnishings and appliances - $13,150

Motor vehicle - $5,650

One motor vehicle - $6,600

Tools of the trade $11,300 (farmers $28,300)

Tools of the trade $11,300 (farmers $29,100)

Personal property prescribed by the regulations - no amount prescribed, therefore $0

Principal residence - no amount prescribed, therefore $0

Principal residence - $10,000


For more information on how these changes will affect Ontarians see Ontario Bankruptcy Exemption Law Changes Will Protect Home Equity

SOURCE Hoyes, Michalos & Associates Inc.

For further information: Douglas Hoyes, CPA, Trustee in Bankruptcy, doug@hoyes.com; Ted Michalos, CPA, Trustee in Bankruptcy, ted@hoyes.com; 1-866-747-0660


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