provincial asset exemptions

What Are The Provincial Asset Exemptions in Prince Edward Island?

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:
    1. Necessary seed to cultivate land under his control, not exceeding 100 acres, and;
    2. 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.

Federal Exemptions:

  • RRSPs are exempt in Prince Edward Island 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.