PEI Bankruptcy Exemptions: What Can I Keep When Declaring Bankruptcy in Prince Edward Island?
Prince Edward Island sets the exemptions – or the value of property – that a person may keep when going bankrupt or making a consumer proposal.
For an example of how the PEI bankruptcy exemptions work please assume that you own a vehicle that is worth $10,000 and has a secured loan of $7,000 against it.
This means that you have an equity of $3,000 in the vehicle.
The PEI exemption for a motor vehicle is $3,000 which means that since you have an equity of $3,000 in your motor vehicle you are able to keep.
Prince Edward Island, PEI Bankruptcy Exemptions (Sections 24 and 25 of the Judgement and Executions Act):
- (a) the necessary and ordinary clothing of the debtor and his family;
- (a.1) any motor vehicle owned by the debtor not exceeding $3,000 in value;
- (b) the household furniture, utensils, equipment, food and fuel that are contained in and form part of the permanent home of the debtor, not exceeding $2,000 in value;
- Registered Retirement Income Funds (RRIFs);
- RRSP’s are exempt (no limit) provided they have a defined beneficiary which is a specific member of direct family;
- (c) in the case of a debtor other than a farmer, tools, instruments and other chattels ordinarily used by the debtor in his business, trade or calling,not exceeding $2,000 in value;
- (d) in the case of a debtor who is a farmer:
- (i) livestock, fowl, agricultural machinery and equipment ordinarily used by the debtor in his farm operation, not exceeding $5,000 in value,and
- (ii) sufficient seed to seed all his land under cultivation not exceeding 100 acres
25.(1) The exemptions prescribed in section 24 do not apply to exempt debt contracted any chattel from seizure to satisfy a debt contracted for the purchase of that chattel.
Maintenance: (2) The exemptions prescribed in section 24 do not apply to exempt any article from seizure to satisfy a debt for maintenance of a spouse, former spouse or child except tools, instruments and other chattels ordinarily used by the debtor in his business,trade or calling.