The Department of Justice is proposing to amend the Exemptions Act.  The proposed amendments would increase the exemption amounts for categories of property under the Act, and revise the categories and descriptions of property that are exempt from seizure.

A creditor who has a judgment or order against a debtor has the ability to seize that debtor’s property as payment for the outstanding debt.  There are, however, limits on the types of property that a creditor can seize as part of the enforcement process.  Some categories of property are entirely exempt from seizure by a creditor.  Other categories of property are exempt up to a certain value or amount (termed “exemption amount”).

The Exemptions Act defines categories of exempted property and exemption amounts for the NWT.  The Exemptions Act was originally enacted in 1948, and the amounts exempt from seizure have remained unchanged despite over 60 years of inflation.  This means that exemption amounts contained in the Act are now outdated and need to be amended to reflect current monetary and property values.

Currently, the Act does not provide the necessary protections for debtors when enforcement actions are brought against them on behalf of creditors exercising their entitlement to receive payment.  A balance needs to be struck to ensure maximum relief for creditors while providing the necessary protection against undue hardship on debtors and their dependents.

You will note that there are changes to the categories of property that contain exemptions.  The Act contains a number of antiquated provisions relating to categories of exempt property.  Some of the exemptions are for categories of property that have little relevance for most NWT residents.  For example, the Act provides an exemption amount for “livestock, fowl, bees, books, tools, implements and other chattels.”  There are also categories of exempt property common in other provincial/territorial exemptions legislation that are not covered in the Act, including provisions relating to motor vehicles, medical health aids, and property traditionally used in hunting or fishing for food.   Revisions to the categories of exempt property are necessary to better reflect the types of property owned by residents of the NWT.

You will also note the changes to the exemption amounts for property under the Act.  For example, the Act currently provides that a maximum of $600 in “personal property necessary to earn a living” is exempt from seizure.  The comparable “personal property” category in Alberta has an exemption amount of $10,000.

The suggested new exemption amounts for certain categories of property are based on the cost of living differential between Alberta and the Northwest Territories.  For other categories of property, reasonable base exemption amounts from other jurisdictions have served as a starting point in determining the exemption amount.

For more information, or to submit comments, please contact Mike Reddy, Senior Policy Analyst. He can also be reached by calling 867-920-3362.  We would appreciate any general or specific comments you may have regarding the proposed amendments to the Exemptions Act by Friday, January 22, 2010.

Proposed Bill
Proposed Regulations
Current Exemptions Act

This page last updated: December 2009