Amendment of O. Reg. 657/05
Regulation - LGIC
Bill or Act:
Summary of Proposal:
The Execution Act is the primary legislation in Ontario that permits the seizure and sale of property by the sheriff where a creditor has obtained a court order to satisfy a debt owed by a debtor. Certain classes of property in the Act are exempt from seizure up to a prescribed value. Section 35 of the Act permits the government to adjust the exemption amounts taking into consideration the Consumer Price Index for Canada once in each year that is divisible by five. The last increase occurred in 2015.
The proposed amendment to O. Reg. 657/05 would seek to increase the current exemption values in section 1 (please see attached regulation comparison chart) as follows:
In paragraph 1 (household furnishings and appliances) to $14,180.
In paragraph 2 (tools and other personal property used to earn income in the case of a debtor engage solely in the tillage of the soil or farming) to $31,379; and in in any other case to $14,405.
In paragraph 3 (motor vehicle) to $7,117.00.
Principle residence to $10,783
Analysis of Regulatory Impact:
The proposed regulation amendment would not impose any additional costs or burdens on the public. There would be no impacts on administrative costs or fiscal implications within the government.
Exemptions from seizure permit debtors (who are not corporations) to carry on with the basics of daily life and to continue to engage in their business in order to earn income.
Debtors would benefit from the proposed amendments because they would be able to hold on to exempt property at a higher value than currently prescribed. This would improve their ability to carry on with the basics of life and continue to engage in their business in order to earn income.
November 23, 2020
Comments Due Date:
December 4, 2020
Ministry of the Attorney General
Court Services Division
720 Bay Street, 2nd Floor
Toronto, ON M7A 2S9