If you go bankrupt in Ontario what you are allowed to keep is legislated by the Ontario Execution Act. These items include:
All necessary clothing;
One motor vehicle worth up to $7,117 (car, truck, etc.);
$14,180 worth of household furnishings and appliances;
$14,405 worth of tools of the trade (equipment that you use to earn a living);
Certain types of life insurance.
All RRSP, RRIF and SPSP (Deferred Profit Sharing Plan) savings except contributions made in the 12 months before your bankruptcy.
Typically, if you own a house, it will be one of the assets liquidated in bankruptcy. It is possible if you have less than 10% equity in your home you may be able to keep it, but a LIT will help determine if that is the most prudent financial strategy.