Quebec 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 moveable property used to furnish your main residence worth $5,000 and you do not owe any creditors for it, the equity you have in these possessions is $5,000. In New Brunswick, the exemption for this type of property is $6,000. Therefore, in this case, you would be entitled to keep the property and the unsecured creditors cannot take this from you.
- Moveable property that furnishes your main residence, used by and necessary for the life of the household, up to a market value of $6,000
- Food, fuel, linens and clothing necessary for the life of your household
- Instruments of work needed for the personal exercise of your professional activity
- Consecrated vessels and items used for religious worship
- Family papers and portraits, medals and other decorations
- Property declared by a donor or testator to be exempt from seizure, which may however be seized by creditors posterior to the gift or to the opening of the legacy, with the permission of the judge and to the extent that he/she determines
- Judicially-awarded support and sums given or bequeathed as support, even if not declared to be exempt from seizure by the instrument evidencing the gift or bequest
- Books of account, titles of debt and other papers in your possession
- Contingent emoluments and fees due to ecclesiastics and ministers of religion by reason of their current services, and the income of their clerical endowment
- Benefits payable under a supplemental pension plan to which your employer contributes on behalf of his/her employees, other amounts declared unseizable by an act governing such plans and contributions paid or to be paid into such plans
- Periodic disability benefits under a contract of accident and sickness insurance
- Reimbursement of expenses incurred under a contract of accident and sickness insurance
- Property of a person that you require to compensate for a handicap
- Certain salaries and wages
- Employer contributions to pension, insurance or social welfare funds
- The value of the food and lodging supplied or paid for by your employer on the occasion of travelling while carrying out work
- Passes given by a transportation undertaking to its employees
For more information on bankruptcy exemptions in Quebec, consult a BDO trustee in the province.