Nova Scotia Bankruptcy Exemptions
In Nova Scotia, property exempt from seizure in bankruptcy is set by the provincial government and applies to the equity in an asset.
Equity is the difference between the value of the asset and what you owe on the asset.
If you have a car worth $7,000 and you still owe $4,000 on the loan, the equity you have in the car is $3,000.
In Nova Scotia, the exemption for a car is $3,000.
Bankruptcy exemptions in Nova Scotia
- No limit on clothes for you and your family.
- No limit on fuel and food for your family.
- Up to $5,000 in household furniture and appliances.
- One motor vehicle up to $3,000; or up to $6,500 if you use it for work.
- All medical and health aids for you and your family.
- Farm equipment, fishing nets, or other tools of your trade up to $1,000.
- No limit on grain and seeds or livestock for domestic use by you and your family.
For more information on bankruptcy exemptions in Nova Scotia, contact a local trustee near you.
Bankruptcy is supposed to give you a fresh start.
That is why you are able to keep your belongings listed on the exemptions in Nova Scotia.
Most bankrupts are able to keep all of their personal assets because most bankrupts have few or even no assets.
If you have significant assets your trustee will work with you to find an alternative to going bankrupt if at all possible.
A consumer proposal, for example, gives you debt relief and protection from your creditors but also allows you to keep all of your assets.
For example, if you had a home worth $100,000 with no mortgage on it you would have to surrender your home and lose the equity if you went bankrupt, but if you made a consumer proposal to your creditors you would be able to keep your home.