What is Bankruptcy in Quebec

When might bankruptcy in be necessary for you?

As a resident of Quebec, Canada, if you are unable to pay your bills as they come due and you are unable to file a proposal to creditors, it may be necessary to file an assignment in bankruptcy. Since you file bankruptcy in your province of residence, if you reside in Quebec, you would file your assignment in bankruptcy there. Information on filing for bankruptcy outside of Quebec can be found here.

The concept behind bankruptcy in Quebec is this: you assign (surrender) everything you own to a trustee in bankruptcy in exchange for the elimination of your unsecured debts. There are a number of differences between bankruptcy in Quebec and bankruptcy in other parts of Canada. For example, in a bankruptcy in Quebec you are allowed to keep certain assets, as described below.

Do I really lose everything?

Under Quebec law, certain things are exempt from seizure by a trustee in bankruptcy. They include:

	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.
	Food, fuel, linens and clothing necessary for the life of the household.
	Property declared by a donor or testator to be exempt from seizure, which may however be seized by creditors posterior to the gift or to the opening of the legacy, with the permission of the judge and to the extent that he determines.
	Judicially awarded support and sums given or bequeathed as support, even if not declared to be exempt from seizure by the instrument evidencing the gift or bequest. 8. books of account, titles of debt and other papers in the possession of the debtor.
	Instruments of work needed for the personal exercise of his professional activity.
	consecrated vessels and things used for religious worship.
	Family papers and portraits, medals and other decorations.
	Periodic disability benefits under a contract of accident and sickness insurance.
	Reimbursement of expenses incurred under a contract of accident and sickness insurance.
	Property of a person that he requires to compensate for a handicap.
	certain salaries and wages.
	Employer contributions to pension, insurance or social welfare funds.
	Contingent emoluments and fees due to ecclesiastics and ministers of religion by reason of their current services, and the income of their clerical endowment.
	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.
	The value of the food and lodging supplied or paid for by the employer on the occasion of traveling while carrying out work.
	Passes given by a transportation undertaking to an employer's employees.

In Quebec, technically, everything else that you own is seized by the trustee and sold to repay your creditors.

What happens to my house in Quebec bankruptcies?

Like personal proposals, Quebec bankruptcy only deals with unsecured creditors. Unless you have accumulated significant equity in your home, it will probably be unaffected by your bankruptcy. If you own your own home make certain to discuss the disposition of your home in detail with your trustee before you file bankruptcy.

Additional information about how bankruptcy in Quebec affects your house.

If I declare bankruptcy in Quebec, can I keep my car?

If you have clear title to your car (you haven't pledged it as security for a loan) then you will be required to either pay the trustee the value of the car from your post-bankruptcy earnings or the trustee will be forced to seize and sell your car. If you have a car (or any other type of vehicle) make certain to discuss the disposition of your car with your trustee before you file bankruptcy in Quebec.

Additional information about how filing for bankruptcy in Quebec affects you car.

What is the next step in Quebec bankruptcies?

If you are considering bankruptcy in Quebec, please contact a nearby expert today, to arrange a free consultation.

For information regarding bankruptcy for Quebec residents, we recommend the following sites.

For information on bankruptcy for Canadians living outside of Quebec, we recommend that you look at the information available on www.moneyproblems.ca.