Quebec bankruptcy exemptions protect the value of the equity in property you own when making a proposal or filing bankruptcy.
For example, if you have furnishings worth $10,000 and there is a $4,500 secured debt owed on the furnishings then the equity in those furnishings is $5,500. In Quebec the exemption for furnishings is set as $6,000 and therefore you are entitled to the equity of $5,500 and you are able to keep these furnishings if you go bankrupt or make a proposal.
Bankruptcy Exemptions in Quebec:
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;
RRSPs, Registered Retirement Income Funds (RRIFs) and Deferred Profit Sharing Plans (DPSPs).
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.
If you have equity in an asset not protected by the Quebec bankruptcy exemptions you may be able to keep that asset by filing a consumer proposal. A consumer proposal must offer the creditors more than they would get in a bankruptcy. A consumer proposal cannot be for more than 5 years. If the creditors do not accept the consumer proposal it does not mean you are automatically bankruptcy.
You can learn more about consumer proposals at this link.
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