Newfoundland and Labrador bankruptcy exemptions
Property exempt from seizure in a bankruptcy is set by the provincial government and applies to the equity in an asset. Equity is the difference between the value of the asset and what is owed on the asset.
Example: If you have a car worth $6,000 and you still owe $4,000 in secured debt on the loan, the equity you have in the car is $2,000. In Newfoundland and Labrador, the exemption for a car is $2,000. Therefore, in this case, you would be entitled to keep the car and the unsecured creditors cannot take this from you.
Exempt property
Food required by you and your dependents over the next 12 months
Necessary clothing for you and your dependents that is of a value not exceeding $4,000
Household furnishings, utensils, equipment and appliances that are of a value not exceeding $4,000
Fuel or heating as a necessity for you and your dependants
One motor vehicle of a value not exceeding $2,000
Medical and dental aids required by you and/or your dependents
Items of sentimental value to you that are of a value not exceeding $500
Domesticated animals kept as pets and not used for a business purposes
Your principal residence of a debtor that is of a value not exceeding $10,000
Personal property used and necessary for you to earn income from your occupation, trade, business or calling to a value not exceeding $10,000
Where your primary occupation is farming, personal property (including agricultural products) ordinarily used by and necessary for you to earn income from farming to a value not exceeding $10,000
Where your primary occupation is fishing, personal property ordinarily used by and necessary for you to earn income from fishing to a value not exceeding $10,000
Where your primary occupation is aquaculture, personal property ordinarily used by and necessary for you to earn income from aquaculture to a value not exceeding $10,000
Certain income
Certain pension plans
For more information on bankruptcy exemptions in Newfoundland and Labrador, consult a BDO trustee in the province.