What happens to my debts when I go bankrupt in Quebec?

What happens to your debts when you go bankrupt in Quebec is complex. Certain debts are not discharged when you go bankrupt. These include:

• Student loans less than 10 years old (click here for the current rules on student loans);

• Alimony and child support;

• Fines and most court ordered restitution payments;

• Debts that arose as a result of fraud;

• Certain government overpayments (this is a complicated area, so if you have received overpayments from the government, you should discuss this with your Quebec bankruptcy trustee).

In addition, in some cases you are allowed to keep assets, such as a car or house, when you go bankrupt. If these assets have a loan secured by the asset (such as a mortgage or car loan), you would be required to continue making payments to the secured creditor while bankrupt. Please consult an Quebec bankruptcy trustee for more information on what happens to your debts when you go bankrupt in Quebec.