PEI 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 $3,000 in secured debt on the loan, the equity you have in the car is $3,000. In PEI, the exemption for a car is $3,000. Therefore, in this case, you are entitled to keep the car and the unsecured creditors cannot take this from you.
- Necessary and ordinary clothing of you and your family
- Any motor vehicle owned by the debtor not exceeding $3,000 in value, except to satisfy all or any part of a fine the payment of which is in default under the Summary Proceedings Act
- Household furniture, utensils, equipment, food and fuel that are contained in and form part of your permanent home, not exceeding $2,000 in value
- Tools, instruments and other chattels ordinarily used by you in your business, trade or calling, not exceeding $2,000 in value
Exempt farm property
Livestock, fowl, agricultural machinery and equipment ordinarily used by you in your farm operation, not exceeding $5,000
Sufficient seed to seed all your land under cultivation not exceeding 100 acres
For more information on bankruptcy exemptions in PEI, consult a BDO trustee in the province.