Provincial Asset Exemptions in New Brunswick

What Are The Provincial Asset Exemptions in New Brunswick?

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:
    1. Employment
    2. To retain employment,
    3. For the debtor’s trade, profession or occupation
    4. 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:
    1. There is a claw back period of any contributions made to the RRSP in the 12 months leading up to the bankruptcy.