Nova Scotia Asset Exemptions
The following assets are protected or exempt assets in Nova Scotia. They are protected against the liquidation by creditors to satisfy unpaid debts: (unless a creditor holds a purchase money security interest)
Nova Scotia Provincial 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 $3,000 at the time the claim for exemption is made,
- If the vehicle is required by the debtor for employment the realizable value not more than $6,500;
- Necessary tools, equipment and books to the value of $1,000 used by the debtor in their principle trade or profession (Tools of Trade)
- Necessary medical and health aids
- Pension plans, RRSP’s, RRIF’s and Deferred profit sharing plans;
- Food, clothing and fuel necessary for the debtor and his family
- Necessary seed, grain, cattle, hogs, fowl, sheep and other livestock;
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 Nova Scotia 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.