Unseizable property is property that cannot be seized by a trustee or another creditor.
In Quebec, most of the rules regarding unseizable property are found in the Code of Civil Procedure and the Civil Code of Quebec. As it is stated in law, certain assets cannot be seized by your creditors for debt repayment, even in the event of a bankruptcy. Although the Trustee will explain the general rules with regards to unseizable assets, we recommend you seek legal advice to confirm whether your assets are subject to seizure.
It is of the utmost importance to determine which assets are not exempt from seizure in deciding whether to file for a bankruptcy or a consumer proposal. Simply put, the Trustee will evaluate the value of the realizable assets in the event of a bankruptcy to determine the amount to be offered in a consumer proposal.
As a general rule, the amount offered to your creditors by way of a proposal should be equal to or greater than what they would receive as dividends in a bankruptcy. In fact, the offered amount always takes into account what creditors could hope to receive in dividends if you were to declare a bankruptcy.
As a result, an individual with fewer assets may be able to offer less to his creditors when filing a consumer proposal.