Exemptions from seizure

A sole proprietor, or an owner who has personally guaranteed a business debt, can be a judgment debtor. The exemptions decide what a writ can reach. This entry covers Ontario and Alberta only; check the rules where you are.

Ontario

Section 2(1) of the Execution Act exempts, at the debtor’s option, listed personal property of a debtor that is not a corporation, including necessary clothing, household furnishings and appliances, tools used to earn income from the debtor’s occupation, and one motor vehicle, the last three within prescribed values; under s. 2(1.1), property worth more than the prescribed amount is subject to seizure and sale, and s. 3 deals with paying the prescribed amount to the debtor out of the sale proceeds. The principal residence is also exempt under s. 2(2) where equity does not exceed the prescribed amount.

Alberta

Section 88 of the Civil Enforcement Act, subject to s. 89, exempts the interest of an enforcement debtor in listed property from writ proceedings, including necessary clothing, household furnishings and appliances, one motor vehicle, medical and dental aids and a principal residence, several up to prescribed values. Section 90 lets the debtor select the exempt items in the circumstances it sets out, and lets the bailiff select them if the debtor does not do so in a timely manner.

• Is the debtor a person or a corporation?
• Which assets are exempt, and which prescribed values apply?
• Is there a personal guarantee behind the business debt?

For guarantees, see what a personal guarantee is in a business sale and writ of execution.