Now That I’ve Gone Bankrupt

What Happens Once I’ve Filed Bankruptcy?

The journey post-bankruptcy can be a bit daunting, especially with the varying laws and personal exemptions in different regions. The focus of this article is to help you navigate this path, specifically in Québec, where there are specific exemptions and asset considerations.

Personal Belongings

In Québec, the law allows you to retain personal belongings up to a value of $6,000 after declaring bankruptcy. The nature of these belongings can vary, but the monetary value must not exceed the specified limit.

Work Equipment

The tools or equipment necessary for your professional pursuits are exempt from being seized. This aspect is particularly important for self-employed individuals or those who rely on specific tools to earn their living.

Clothing and RRSPs

Clothing, an essential basic need, is also exempt from seizure in a bankruptcy situation. Additionally, Registered Retirement Savings Plans (RRSPs) are typically protected, except for contributions made in the year preceding the bankruptcy declaration.

Leased Car and House

Keeping a leased vehicle or your residence depends on the equity or value attached to these assets. If there’s any equity left after subtracting any lien or mortgage, these assets might be kept.

Assets at Risk

Some assets may not be safe from seizure. These include a Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP), or a vehicle without a lien that holds value.


Bankruptcy impacts each individual differently. The assets you might lose depend on the specific details of your case.


The Role of a Trustee

A licensed Trustee plays a critical role in this process. They can provide advice tailored to your unique situation, helping you understand the potential outcomes and repercussions.

Setting Up a Consultation

For a thorough understanding of what you may or may not retain, consider setting up a confidential, no-cost meeting with a licensed Trustee. This consultation can help clarify the laws and regulations surrounding bankruptcy in Québec.

Understanding Your Rights

Familiarizing yourself with your rights is a crucial step. It can help you make informed decisions and explore possible alternatives to bankruptcy.

Exploring Your Options

Remember, bankruptcy is not the only option. There might be other viable solutions depending on your situation, like debt consolidation or consumer proposals. A Trustee can guide you through these alternatives.


Navigating the post-bankruptcy journey can be challenging. Understanding the laws, knowing your rights, and seeking professional advice can help you steer your way more effectively. Remember, now that you’ve gone bankrupt, it’s not the end but a chance to start afresh and build a more secure financial future.

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