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PEI Bankruptcy Exemptions.
Assets you keep in a bankruptcy or a proposal.
The property exempt from seizure is set by the provinces and territories and applies to the equity in the asset.
Equity is the excess that the value of an asset has over any charges or encumbrances against that asset.
For example, if you have a car worth $5,000 and there is a $2,000 secured debt against it then the equity in the vehicle is $3,000. In PEI the exemption for a vehicle is $3,000 so in this example you are entitled to the equity of $3,000 and the unsecured creditors cannot take this.
Prince Edward Island, PEI Bankruptcy Exemptions:
Sections 24 and 25 of the Judgement and Executions Act
• (a) the necessary and ordinary clothing of the debtor and his family;
• (a.1) any motor vehicle owned by the debtor not exceeding $3,000 in value;
• (b) the household furniture, utensils, equipment, food and fuel that are contained in and form part of the permanent home of the debtor, not exceeding $2,000 in value;
• Registered Retirement Income Funds (RRIFs);
• RSP's are exempt (no limit) provided they have a defined beneficiary which is a specific member of direct family;
• (c) in the case of a debtor other than a farmer, tools, instruments and other chattels ordinarily used by the debtor in his business, trade or calling,not exceeding $2,000 in value;
• (d) in the case of a debtor who is a farmer:
(i) livestock, fowl, agricultural machinery and equipment
ordinarily used by the debtor in his farm operation,not exceeding $5,000 in value,and
(ii) sufficient seed to seed all his land under cultivation not
exceeding 100 acres
25.(1) The exemptions prescribed in section 24 do not apply to exempt debt contracted any chattel from seizure to satisfy a debt contracted for the purchase of that chattel.
Maintenance (2) The exemptions prescribed in section 24 do not apply to exempt any article from seizure to satisfy a debt for maintenance of a spouse, former spouse or child except tools, instruments and other chattels ordinarily used by the debtor in his business, trade or calling.