The following assets are protected or exempt assets in Prince Edward Island. They are protected against the liquidation by creditors to satisfy unpaid debts: (unless a creditor holds a purchase money security interest)
Prince Edward Island Provincial Exemptions:
- Furniture, household furnishings and appliances, utensils, equipment, food and fuel that are contained in and form part of the permanent home of the debtor not exceeding the realizable value of $2,000.
- One motor vehicle having a realizable value of not more than $6,500;
- Necessary tools, equipment and books to the value of $2,000 used by the debtor in their trade or profession (Tools of Trade);
- Necessary medical and health aids;
- Pension plans, Registered Retirement Income funds (RRIFs);
- RRSP’s are exempt on the condition they have a defined beneficiary as defined by provincial legislation;
- Food, clothing and fuel necessary for the debtor and his family;
- In the case of a farmer:
- Necessary seed to cultivate land under his control, not exceeding 100 acres, and;
- Livestock, fowl, farming machinery and equipment, not exceeding $5,000 in value
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.
- Provincial exemptions do not apply against a spouse, former spouse or child with respect to maintenance orders, except in the case of tools of trade.
- RRSPs are exempt in Prince Edward Island 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.