Nova Scotia Asset Exemptions
In Nova Scotia, the Judicature Act of Nova Scotia, the Personal Property Security Act of Nova Scotia and the Insurance Act of Nova Scotia all contain exempt asset rules.
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 Bankruptcy Exemptions (Provincial Exemptions)
- Furniture, household furnishings and appliances used by the debtor or a dependent to a realizable value of $5,000.
- The aggregate value of the motor vehicle that is exempt from seizure under clause 45(1)(f) of the Judicature Act is $6500.
- 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;
- Chattels used in debtor’s chief occupation: The aggregate value of chattels used in the debtor’s chief occupation that are exempt from seizure under clause 45(1)(e) of the Judicature Act is $7500
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.
Federal Exemptions
- 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.
Contact Allan Marshall for additional information on bankruptcy exemptions in Nova Scotia.
