The following assets are protected or exempt assets in New Brunswick. They are protected against the liquidation by creditors to satisfy unpaid debts: (unless a creditor holds a purchase money security interest)
New Brunswick Provincial Asset Exemptions:
- Furniture, household furnishings and appliances used by the debtor or a dependent to a realizable value of $5,000.
- One motor vehicle having a realizable value of not more than $6,500 at the time the claim for exemption is made, if the vehicle is required by the debtor for:
- To retain employment,
- For the debtor’s trade, profession or occupation
- For transportation to a place of employment where public transportation is not reasonably available.
- Necessary tools, equipment and books to the value of $6,500 used by the debtor in their trade or profession (Tools of Trade)
- Necessary medical and health aids
- Pension plans
- Food, clothing and fuel necessary for the debtor and his family
- Two horses and sets of harness, two cows, ten sheep, two hogs and twenty fowl, and food therefor for six months
- Necessary seed grain and potatoes required for planting purposes to the following quantities: forty bushels of oats, ten bushels of barley, ten bushels of buckwheat, ten bushels of wheat and thirty-five barrels of potatoes
- Pets belonging to the debtor
Exceptions to the exemption(s)
- The exempt status does not apply to assets or chattel subject to a purchase money security interest (PMSI). A PMSI is when a loan is given to facilitate the purchase of a specific asset, exempt or not. The lien would be valid against that asset until the loan is paid, if the lien is properly registered.
- RRSPs are exempt in New Brunswick under the bankruptcy and insolvency Act:
- There is a claw back period of any contributions made to the RRSP in the 12 months leading up to the bankruptcy.