Provincial Asset Exemptions in Nova Scotia?

What Are The Provincial Asset Exemptions in Nova Scotia?

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)

Provincial Asset Exemptions in Nova Scotia?

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.

Federal Exemptions:

  • RRSPs are exempt in Nova Scotia 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.