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 tools used in your trade or business worth $12,000 and there is a $3,000 secured debt against them then the equity in the tools is $9,000. In Newfoundland the exemption for tools used in your trade or business is $10,000 so in this example you are entitled to the equity of $9,000 and the unsecured creditors cannot take this.

Newfoundland and Labrador Bankruptcy Exemptions:  

• Food required by debtor and dependants during the next 12 months;

• Medical and dental aids required by debtor and dependants;

• Domesticated animals which are kept as pets and not used for business purpose;

• Fuel or heating as a necessity for the debtor and his or her dependants;

• Clothing of the debtor and his or her dependants, of a value totalling $4,000;

• appliances and household furnishings (which are defined as washing machine, clothes dryer, "reasonably necessary" bedroom suites and bedding, oven and stove top burners,  "necessary" dishes and kitchen utensils, and "necessary" strollers, cribs and highchairs), of a value totalling $4,000;

• Motor vehicle of the debtor, value totalling $2,000;

• Items of a sentimental value to the debtor, a value totalling $500;

• The debtor's equity in his or her principal residence, $10,000;

• Pensions;

• RRSPs, Registered Retirement Income Funds (RRIFs) and Deferred Profit Sharing Plans (DPSPs).

Personal property used by and necessary for debtor to earn income from occupation, trade, business or calling, $10,000.