Property exempt from seizure in a 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 is owed on the asset.
Example: If you have a car worth $6,000 and you still owe $3,000 in secured debt on the loan, the equity you have in the car is $3,000. In PEI, the exemption for a car is $3,000. Therefore, in this case, you are entitled to keep the car and the unsecured creditors cannot take this from you.
Exempt farm property
For more information on bankruptcy exemptions in PEI, consult a BDO trustee in the province.
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