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Nova Scotia, NS Bankruptcy Exemptions

(Assets you keep in a Bankruptcy)

These exemptions are applicable to all seizures not just in a bankruptcy or proposal context.

Bankruptcy Exemptions for other provinces and territories can be found here

 

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 household goods worth $10,000 and there is a $6,000 secured debt against them then the equity in the household goods is $4,000. In Nova Scotia the exemption for household goods is $5,000 so in this example you are entitled to the equity of $4,000 and the unsecured creditors cannot take this.


Nova Scotia Bankruptcy Exemptions:

  • Necessary wearing apparel, household furnishings and furniture;
  • Necessary fuel and food;
  • Necessary grain, seeds, cattle, hogs, fowl, sheep and other livestock;
  • Necessary medical and health aids;
  • Farm equipment, fishing nets, tools and implements used in debtor's chief occupation, not exceeding $1,000;
  • Household goods not exceeding $5,000;
  • Motor vehicle not exceeding $3,000;
  • Motor vehicle if required for work or business not exceeding $6,500.
  • Effective July 7, 2008 exemptions are in effect for all registered retirement savings plans (RRSP's, RRIF's and DPSP's (Deferred Profit Sharing Plans).
    • Contributions made in the 12 months prior to the date of bankruptcy will be recovered (clawed back) for the benefit of the bankruptcy estate for RRSPs in provinces without RRSP exemption laws (BC, Alberta, Ontario, NB, and NS);
    • There will be no upper cap on the amount of RRSPs that can be protected;
    • There will be no need to set up the RRSPs in a locked in plan to make them eligible for exemption;
    • The court will have no jurisdiction to extend the one year claw back period period in an appropriate case.
  • NOTE: Pursuant to the PPSA of NS, A debtor may claim the following items of COLLATERAL to be exempt from seizure BY A SECURED PARTY:

    1 motor vehicle not exceeding $6,500 IF the motor vehicle is required for work/to retain employment AND IF the secured creditor does not have a PMSI on the asset (in other words, they took collateral on the asset but did not originally advance the funds to the debtor for the purchase of the asset).

     

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