Quebec Bankruptcy Exemptions: Assets you keep in a bankruptcy or a proposal

The property exempt from seizure is set by the provinces and territories and applies to the equity in the asset.

Equity is the excess that the value of an asset has over any charges or encumbrances against that asset.

For example, if you have furnishings worth $10,000 and there is a $4,500 secured debt against them then the equity in the furnishings is $5,500. In Quebec the exemption for furnishings is $6,000 so in this example you are entitled to the equity of $5,500 and the unsecured creditors cannot take this.

Quebec Bankruptcy Exemptions

The movable property which furnishes his main residence, used by and necessary for the life of the household, up to a market value of $6,000 established by the seizing officer;

The food, fuel, linens and clothing necessary for the life of the household;

The instruments of work needed for the personal exercise of his professional activity;

Family papers and portraits, medals and other decorations;

Property declared by a donor or a testament to be exempt from seizure except in certain cases;

Judicially awarded support and sums given or bequeathed as support;

Benefits payable under a supplemental pension plan to which an employer contributes on behalf of his employees, other amounts declared unseizable by an Act governing such plans and contributions paid or to be paid into such plans;

Periodic disability benefits and expense reimbursements under a contract of accident and sickness insurance;

Property of a person that he requires to compensate for a handicap;

RRSP's, Registered Retirement Income Funds (RRIF's) and Deferred Profit Sharing Plans (DPSP's).

A certain portion of salaries and wages based on the number of dependants.

* Nevertheless, the property referred to in first and third items above may be seized and sold by a creditor holding a hypothec thereon.