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What Are the PEI Provincial Asset Exemptions?

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 – PEI Provincial Asset 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 $5,000.
  • 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.

Contact Us – We Can Help

Do you have any questions about the PEI provincial asset exemptions? Talk to one of our Licensed Insolvency Trustees. Book a free consultation today.

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Mark Marshall BBA, C.I.R.P, L.I.T

Mark has been working in the Insolvency field since graduating from the University of New Brunswick with a degree in Business Administration (BBA). In 2012 Mark received his Chartered Insolvency & Restructuring Professional (CIRP) designation and attained his license as a Licensed Insolvency Trustee (LIT) in 2013.