Small Claims Court

What property cannot be seized to pay a judgment in Ontario?

Last updated October 7, 2026.

In Ontario, a creditor cannot seize a debtor's necessary clothing, household furnishings and appliances worth up to $17,091, work tools worth up to $17,362, one vehicle worth up to $8,578, or medical and disability aids. Equity of up to $12,997 in a principal residence is also protected, and 80 percent of net wages cannot be garnished for an ordinary debt. These amounts took effect on December 19, 2025, and they protect people, not corporations.

The exemptions come from the Execution Act, its exemptions regulation, and the Wages Act. Whether you are trying to collect a judgment or trying to keep your car, our page on help with Small Claims Court cases explains how Carson Frankum, a licensed paralegal in Hamilton, works on enforcement from either side.

How do exemptions work, step by step?

Exemptions only matter once a creditor tries to take something. Here is how a seizure of belongings usually unfolds after a Small Claims judgment, and where the exemptions come in.

The creditor gets a writ. If the judgment is in default, the clerk issues a writ of seizure and sale of personal property (Form 20C) to the bailiff at the creditor's request, supported by an affidavit stating the amount owing (Rules of the Small Claims Court, r. 20.06(1)). The court fee to issue it is $68, and the bailiff's duties are carried out by the local enforcement office. If your judgment came from the Hamilton court, the writ is issued there; see our page on Small Claims Court in Hamilton.
The creditor tells the enforcement office what to seize. The province's guide says the creditor must say in writing what property to seize and where to find it, usually in a Direction to Enforce (Form 20O), and pay an enforcement fee and a deposit for expenses such as moving and storage.
The enforcement office weighs the cost. The guide notes the office must act reasonably toward both sides and can refuse to act if the estimated cost of seizing and selling is greater than the debtor's equity in the property.
Property is seized. A dwelling cannot be entered by force unless the court that issued the writ orders it (Execution Act s. 20(2)). On request, the debtor must be given an inventory of what was seized (r. 20.06(5)).
The debtor is told about exemptions. When property that may be exempt is seized, the sheriff serves the debtor with a notice of exemption (O. Reg. 657/05, s. 2(1)).
The debtor claims the exemption within five business days. The claim is filed with the sheriff, who will not accept a late claim unless a court orders it (O. Reg. 657/05, s. 3(1) and (2)). The debtor chooses which items to claim (Execution Act s. 5(1)) and must prove the claim (s. 5(4)).
The sheriff decides and writes to both sides. If the exemption is allowed, the debtor has five business days from receiving the decision to arrange to collect the exempt items, or the claim is treated as abandoned and the sale can go ahead (O. Reg. 657/05, s. 3(4), (5) and (7)).
Non-exempt property is sold. Notice of the time and place of sale must be mailed to the creditor and debtor at least 10 days before, and the sale must be advertised (r. 20.06(6)).

Property exempt from seizure in Ontario (amounts in force since December 19, 2025)
Property	Protected up to	Previous limit	Law
Necessary clothing of the debtor and dependants	No dollar limit	No dollar limit	Execution Act s. 2(1), para. 1
Household furnishings and appliances	$17,091	$14,180	s. 2(1), para. 2; O. Reg. 657/05 s. 1(1)
Tools and other property used to earn income	$17,362	$14,405	s. 2(1), para. 3; O. Reg. 657/05 s. 1(1)
Farming: livestock, fowl, bees, books, tools and implements (debtor engaged solely in farming)	$37,820	$31,379	O. Reg. 657/05 s. 1(1)
One motor vehicle	$8,578	$7,117	s. 2(1), para. 4; O. Reg. 657/05 s. 1(1)
Equity in the debtor's principal residence	$12,997	$10,783	s. 2(2) and (3); O. Reg. 657/05 s. 1(2)
Aids and devices needed for a disability or a medical or dental condition	No dollar limit	No dollar limit	s. 2(4)
Wages (ordinary debts)	80% of net wages	Unchanged	Wages Act s. 7(2)
Wages (support or maintenance orders)	50% of net wages	Unchanged	Wages Act s. 7(3)

The new amounts were set by O. Reg. 393/25, which came into force when it was filed on December 19, 2025. Always check the current regulation before relying on a figure.

What happens when an item is worth more than the limit?

An exemption is a dollar amount, not a blanket protection. Under section 2(1.1) of the Act, if a protected item is worth more than its prescribed amount, it can be seized and sold. Section 3 then decides what the debtor gets back:

A vehicle worth more than the limit can be sold if its sale value is more than $8,578 plus the costs of sale, and the debtor is paid $8,578 out of the proceeds (s. 3(2)).
Household furnishings or an appliance worth more than the limit can be sold only if the sale value exceeds the limit plus the costs of sale and no other personal property is available to seize. The debtor is then paid the prescribed amount from the proceeds (s. 3(1)).
Work tools work slightly differently: instead of keeping them, the debtor may elect to receive the proceeds of their sale up to the prescribed amount (s. 3(3) and (4)).

Money paid to a debtor under these rules is itself exempt from seizure by a creditor (s. 4).

What changes the answer?

The debtor is a corporation. The personal property exemptions in section 2(1) apply only to "a debtor that is not a corporation". A company's equipment and vehicles are not protected by them.
The debt is for the item itself. The exemptions do not apply to property that is being seized to pay the debt incurred to buy it, except furnishings needed to keep a functional household and ordinary clothing (s. 7(1)).
The debt is for support. The exemptions do not protect property from seizure for spousal or child support, except tools and items used in the debtor's work (s. 7(2)). For wages, only 50 percent is exempt when enforcing a support order (Wages Act s. 7(3)).
Property bought to defeat creditors. Nothing bought for the purpose of defeating creditors' claims is exempt (s. 7(3)).
A judge changes the wage exemption. On a creditor's motion, a judge can lower the 80 percent wage exemption, and on a debtor's motion, raise it, considering the debtor's finances and other relevant factors (Wages Act s. 7(4) and (5)). The ministry's guide notes a debtor can ask for this at a garnishment hearing.
The money is not wages. The ministry's guide says employment insurance, social assistance and pension payments cannot be garnished, even after they are deposited in a bank account. Disability insurance payments that replace lost income are treated as wages, so 80 percent of them is protected (Wages Act s. 7(1.1)).
The dispute goes to court. If the debtor and creditor disagree about whether an item is exempt or what it is worth, either can apply to the Superior Court of Justice (Execution Act s. 8(1); O. Reg. 657/05, s. 4). The sheriff then holds off on the sale. That application is in the Superior Court, where you would need a lawyer; a licensed paralegal can help with the Small Claims steps around it.

A worked example

For example, imagine a Hamilton electrician named Priya who runs her business as a sole proprietor and owes a supplier $11,000 under a Small Claims judgment. The supplier learns at an examination hearing that Priya owns a pickup truck worth about $14,000 with no loan on it, and around $9,000 in tools.

The supplier gets a writ and directs the enforcement office to seize the truck. Priya is served with a notice of exemption and files her claim within five business days. Because the truck is worth more than $8,578 plus the costs of sale, it can be sold, but Priya receives $8,578 from the proceeds, and that money cannot be seized. Her tools, worth less than $17,362 and used to earn her income, stay with her. Before seizing the truck, the supplier had to show proof of searches confirming who owns it and whether any liens are registered against it, as the ministry's guide requires for a motor vehicle.

This is a made-up illustration, not a real case. Real values, sale costs and liens can change the result.

Common mistakes people make

Missing the five-business-day window. After a notice of exemption is served, the sheriff will not accept a late claim without a court order (O. Reg. 657/05, s. 3(2)).
Assuming everything in the house is safe. Furnishings and appliances are protected only up to $17,091 in total, and anything above that can be at risk.
Using old figures. Older guides may still show the amounts in force before December 19, 2025, such as $7,117 for a vehicle. The current amounts are in the table above.
Creditors seizing without checking equity. Liens, loans and sale costs can leave nothing for the creditor, and the creditor pays the enforcement deposit up front. A search of registered liens and a vehicle abstract come first.
Forgetting the wage rules. A garnishee can pay into court only the part of wages that is not exempt (r. 20.08(9)). Debtors who are struggling can ask a judge to raise the exempt share. Our article on garnishing wages after a Small Claims judgment walks through the creditor's steps.
Arguing exemptions at the wrong court. Exemption disputes go to the Superior Court of Justice under section 8 of the Act, not to the Small Claims Court.

What to do this week

Debtors: list your vehicle, furniture and appliances, and work tools, with an honest estimate of what each would sell for.
Keep anything that proves value or use: purchase receipts, loan papers, and proof that tools are used in your work.
If you receive a notice of exemption, mark the date and file your exemption claim with the enforcement office within five business days.
Creditors: before directing a seizure, run lien searches and get a vehicle abstract, and compare the likely sale value with the exemption and costs.
Consider whether a garnishment or a payment order would recover more for less, and read our guide to paying a Small Claims judgment in instalments.
Note the judgment date and how long your enforcement tools last, using our page on how long a Small Claims judgment lasts.

Frequently asked questions

Can a creditor take money from my bank account?

Yes, by garnishment, which is separate from seizing belongings. The ministry's guide says employment insurance, social assistance and pension payments cannot be garnished even once deposited. If the account is joint, the starting point is that one-half can be garnished (r. 20.08(2)).

Can my house be sold to pay a Small Claims judgment?

A creditor can file a writ of seizure and sale of land with the sheriff, and if your equity in your principal residence is more than $12,997, the home can be subject to seizure and sale (Execution Act s. 2(3)). No step to sell land can be taken until four months after the writ is filed, and no sale can happen until six months after (Rules of Civil Procedure r. 60.07(17) and (18)).

Who decides what is "necessary" clothing?

The Act protects "necessary clothing" of the debtor and dependants without a dollar cap. If the creditor and debtor disagree about whether something is exempt, either can apply to the Superior Court of Justice to decide (s. 8(1)).

Do the exemptions protect business equipment?

For an individual, including a sole proprietor, tools and other property used to earn income are protected up to $17,362. For a corporation, the section 2(1) exemptions do not apply at all.

Does interest keep growing while I cannot pay?

Yes. Postjudgment interest runs on the unpaid amount from the date of the order (Courts of Justice Act s. 129). Our page on interest on debts and judgments explains the rate.

Can the enforcement office break into my home?

Not without a court order. The sheriff cannot use force to enter a dwelling unless the court that issued the writ authorizes it (Execution Act s. 20(2)).

Does any of this apply before I am sued?

No. Seizure needs a judgment and a writ first. If you are owed money and have not sued yet, start with how much you can sue for in Small Claims Court. If you are owed for work you did, see suing for an unpaid invoice.

Sources

Need help with a Small Claims Court matter? Contact us today for a consultation.

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This page gives general information about Ontario law, not legal advice for your situation. Cheddar Paralegal PC is a paralegal firm licensed by the Law Society of Ontario; licensed paralegals can help only with matters the Law Society allows paralegals to handle.