Nova Scotia bankruptcy exemptions
What can I keep when I go bankrupt?
Property exempt from seizure in a bankruptcy is set by the Nova Scotia 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 $3,000 in secured debt on the loan, the equity you have in the car is $3,000. In Nova Scotia, the exemption for a car is $3,000. Therefore, in this case, you would be entitled to keep the car and unsecured creditors cannot take this from you.
Exempt property
- Wearing apparel and household furnishings and furniture that are reasonably necessary for you and your family
- All fuel and food reasonably necessary for the ordinary use of your family
- All grain and other seeds, and all cattle, hogs, fowl, sheep and other livestock that are reasonably necessary for domestic use by you and your family
- All medical and health aids reasonably necessary for the you and your family
- Farm equipment, fishing nets, tools and implements or other chattels that are used in your chief occupation, not exceeding in aggregate value of $1,000
- One motor vehicle not exceeding in aggregate value of $3,000
For more information on bankruptcy exemptions in Nova Scotia, consult a BDO trustee in the province.