Bankruptcy Quebec - Declaring Personal Bankruptcy in Quebec, QC
Get Out of Debt Quickly and Easily
What are the Bankruptcy Laws in Quebec?
If you have been watching your debt rise over the past few years, or you are no longer able to make the minimum payment on your debt, you should consider if it might be time to declare bankruptcy.
Bankruptcy in Quebec is intended to give debt relief to residents who have no realistic way to get out of debt with their current income and assets.
Personal bankruptcy is a legal process that allows you to achieve a fresh financial start and escape high interest rates, overwhelming credit card bills, wage garnishments, and debt collection calls.
In order to file for bankruptcy, you must have at least $1,000 in unsecured debt, and you must work with a licensed insolvency trustee who is an expert on the bankruptcy laws in Quebec.
Quebec residents who wish to file for bankruptcy can do so if they qualify.
Declaring personal bankruptcy in Quebec can help you get out of debt but you should meet with a Licensed Insolvency Trustee to explore all of your options to get out of debt, such as debt consolidation or a consumer proposal.
When you go bankrupt you will have to turn over your non-exempt assets.
However, there are some exemptions that allows you to keep:
- Your clothes, food and fuel for your household,
- The tools necessary for your job,
- Household furnishings up to $6,000 in value,
- Financial awards given to you as a result of adjudication,
- Inherited property the giver has declared as exempt.
Your Trustee will administer your bankruptcy and help you throughout the process.
Any of your non-exempt assets will be sold and the proceeds held in trust by your Trustee, who will make sure the creditors receive some of the monies they are owed.
However, declaring bankruptcy in Quebec gives you a fresh start and allows you to rebuild your financial future.
You will be discharged from bankruptcy in as little as 9 months, at which point your consumer debt will be erased.
What Exactly is Personal Bankruptcy?
Claiming bankruptcy in Quebec is your right as a resident, or someone who does work, in Quebec.
It allows you to receive protection from yoour creditors and gives you a fresh financial start.
When you have no other options to pay off your debt or regain control of your debt, personal bankruptcy can help you get a fresh start.
Clear Your Debts and Get a Fresh Start!
After your bankruptcy is completed all of your debts such as credit cards, tax debt, personal loans and other unsecured debts will be eliminated.
A meeting of creditors is rarely called, but in some cases you will have to meet with your creditors to explain the source of your money problems.
Your Trustee will guide you through the entire process, and make sure the meeting goes well.
Put An End To Creditor Harassment
Once you have declared personal bankruptcy in Quebec, your creditors will have no recourse against you.
You will receive an automatic stay of proceedings by going bankrupt, which prevents your creditors from making collection attempts, so that means all the harassing collection calls will end, wage garnishments will stop, and you will be able to get your frozen bank account unfrozen.
How Does Bankruptcy Law in Quebec Differ?
Quebec is somewhat different than the rest of Canada, which means that the bankruptcy laws in Quebec differ slightly from the rest of the provinces and territories.
The first difference is that Quebec uses the Civil Law tradition, when the rest of Canada uses the Common Law rules.
The majority of Quebec bankruptcies are administered by the Civil Code and Civil Code of Procedure in Quebec.
Therefore, personal bankruptcy in Quebec has slightly different rules regarding procedure, administrative tasks and the property that can be kept and surrendered.
Under Quebec bankruptcy law, personal property is not an asset for the bankruptcy estate unless it has a sellable value over $6,500.
Under the Civil Laws of Quebec, this is the property you can keep.
Unfortunately, this means that there are no set exemptions that protect your car or equity in a home.
The court must make a declaration on what assets can be exempted from seizure by your creditors.
Another difference of personal bankruptcy in Quebec relates to income taxes; your tax refund is not considered an asset in a Quebec bankruptcy.
To learn more about the difference in Quebec bankruptcy laws, please contact one of our friendly insolvency trustees today to schedule a confidential evaluation.
Determing the Best Way to Get Out of Debt in Quebec
If you are considering claiming bankruptcy, the first thing you should do is to contact your local Bankruptcy Canada Licensed Insolvency Trustee to speak about your available options to get out of debt.
Our friendly insolvency team will help you determine the best way for you to get out of debt.
In some cases, filing for bankruptcy in Quebec will be the best option and if so, we will help you understand the entire process of going bankrupt.
In other cases, we can help you explore other debt solutions that will work better for you.
We can help with several other debt relief alternatives to your debt problems, such as:
When you are struggling with debt and looking for a way to get out of debt, it can be challenging to know who to turn to and what to do next.
Fortunately there are several solutions to you, including filing for personal bankruptcy.
At Bankruptcy Canada we are experienced and knowledgeable debt experts who can help you get out of debt in a way that fits your unique financial challengings.
With the help of our friendly debt relief team we can explore all of your debt relief options.
All of the Licensed Insolvency Trustees of Bankruptcy Canada are members of CAIRP (Canadian Association of Insolvency and Restrucuring Professionals).
CAIRP is the governing body that advocates for the insolvency (bankruptcy and consumer proposal) process in Canada.