There are certain "warning signs" that may indicate you are in financial trouble such as: 
Student Loans can be erased in a bankruptcy if the student was in school 7 or more years ago. This amendment will apply where the debtor obtains his or her discharge on or after July 7, 2008 (PROVIDED that at the time they filed they had ceased to be student for the required seven years) or the debtor had or becomes bankrupt on or after July 7, 2008.
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Quebec Bankruptcy FAQsQuestions and Answers about Quebec Bankruptcy and Quebec Personal Proposals
How do I know if I am in financial trouble? Receiving frequent calls or letters from creditors or collection agencies. Having no savings. Spending all your money before payday. Stalling one creditor to pay another. Buying things impulsively. Using your credit cards or other loans to pay for everyday expenses. Failing to budget or make a financial plan. Having your consolidation loan applications rejected. Having trouble making the minimum payments on your credit cards. Not knowing what your real monthly expenses are. Is bankruptcy my only option?
If you are in financial trouble, you may believe that bankruptcy is your only option. In many cases there are options other than bankruptcy, including:
How do I file personal bankruptcy?
What About my Student Loans?
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No, you will not lose everything. You can view the assets you keep in this FAQ |
No, you will not lose everything. The Quebec government has bankruptcy and proposal exemption laws which allow you to keep equity in certain assets. View the assets you can keep here
Equity is the excess that the value of an asset has over any charges or encumbrances against that asset.
For example, if you have household goods worth $10,000 and there is a $6,000 secured debt against them then the equity in the household goods is $4,000. In Quebec the exemption for household goods is $5,000 so in this example you are entitled to the equity of $4,000 and the unsecured creditors cannot take this.
Quebec Bankruptcy Exemptions:
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* Nevertheless, the property referred to in first and third items above may be seized and sold by a creditor holding a hypothec thereon.
By law, all actions against a bankrupt must cease once the documents are filed. |
Yes, they will! By law, all actions against a bankrupt must cease once the documents are filed. That means most lawsuits and wage garnishments against you will stop. This does not apply to secured creditors such as banks holding, for example, a lien on a car.
Your spouse's credit rating will not be affected by your bankruptcy and any assets in the spouse's name will not be part of the bankruptcy. |
Your spouse will not be affected by your bankruptcy if he or she is not responsible for any of your debt (did not sign an agreement or contract for any of your debt). If they have a supplemental credit card they are probably responsible for that debt. Your spouse's credit rating will not be affected by your bankruptcy and any assets in the spouse's name will not be part of the bankruptcy.
If your spouse is responsible for any of your debt or has his own debt then the spouse may have to file bankruptcy too. Your spouse may be indirectly effected after you file bankruptcy, because you may not be able to co-sign a loan in the future, if your spouse ever needed a co-signer.
Anyone who has co-signed a loan for you will still be responsible to make loan payments after you go bankrupt.
Your wages will not be affected by your bankruptcy |
You will still continue to receive your wages
Tax debt is erased in a bankruptcy |
Tax arrears and most debt is erased in a bankruptcy.
All debt is erased, upon the debtor being discharged from bankruptcy, EXCEPT for the following:
Fines imposed by a Court;
Money owing for things stolen;
Things obtained by misrepresentation;
Alimony or maintenance payments;
Award of damages by a court for intentionally inflicting bodily harm or sexual assault;
Student loans if bankruptcy is filed prior to or within seven years after the finish of studies.
Our Predictor will let you know how much you have to pay and how long you will be in bankruptcy. |
Bankruptcy Discharge Rules:
- 9 month automatic discharge for 1st. time bankrupts who fulfill all their duties and who do not have excess income. (Required monthly payment of less than $100.00 per month)
- 21 months (or more at the court's discretion) for 1st. time bankrupts who fulfill all their duties. and who have excess income. (Required monthly payment of $100.00 per month or greater)
-24 months for 2nd time bankrupts who do not have excess income. (Required monthly payment of less than $100.00 per month)
-36 months for 2nd time bankrupts who have excess income. (Required monthly payment of $100.00 per month or greater)
-Bankrupts with personal income tax debt of $200,000.00 or more representing 75 percent or more of total unsecured claims, are not eligible for an automatic discharge. They must go to court for an adjudication.
Our Predictor will let you know how much you have to pay and how long you will be in bankruptcy.
Information on how the calculations are made is at this link.
Most bankruptcies are not published in the newspapers. Newspaper announcements are reserved for corporate and very large personal bankruptcies. |
Unless you are a prominent person, in most cases only your creditors will know you have filed for bankruptcy. Most bankruptcies are not published in the newspapers. Newspaper announcements are reserved for corporate and very large personal bankruptcies. Once you declare bankruptcy, the Trustee will notify all your creditors of your bankruptcy. The Superintendent of Bankruptcy will notify the credit bureaus. The credit bureaus will keep a record of your bankruptcy until 6 years after your discharge.
The bankrupt must also provide the trustee with reports as to earnings and living expenses and any change in the bankrupt's family situation. |
The bankrupt must keep the trustee informed as to where the bankrupt is living and also must respond to the trustee's requests and assist him as required and provide whatever information is requested. The bankrupt must also provide the trustee with reports as to earnings and living expenses and any change in the bankrupt's family situation. The trustee will provide the bankrupt with appropriate forms to be filled in that will provide the trustee with the necessary information. A meeting of creditors is not required unless requested by the Superintendent of Bankruptcy or creditors with an aggregate of at least 25% of the proven claims. These meetings are usually held at the office of the trustee.
Probably the major reasons are the stay of proceeding and the fact that the trustee will deal with your creditors allowing you to get on with your life. |
Stress is alleviated for a number of reasons. Probably the major reasons are the stay of proceeding and the fact that the trustee will deal with your creditors allowing you to get on with your life.
If a person has the ability to make a proposal (i.e. his or her income exceeds living expenses), then he or she should consider making a proposal. |
Power Point Presentation: Steps in a Consumer Proposal.
If a person has the ability to make a proposal (i.e. his or her income exceeds living expenses), then he or she should consider making a proposal.
If any person files for bankruptcy when he or she has the ability to make a proposal, it is the Trustee's duty to oppose the bankrupt's discharge. In this case, the bankrupt may be in bankruptcy up to an additional 12 months beyond the usual 9 months. The bankrupt will be required to make payments in each of these months.
Using credit counsellors will not give you a better credit rating faster. In fact, you will likely take longer to re-establish a good rating and pay much more if you use a credit counsellor rather than a trustee. |
No! So long as you're on any kind of payment plan the credit bureau will record that fact. Using credit counsellors will not give you a better credit rating faster. In fact, you will likely take longer to re-establish a good rating and pay much more if you use a credit counsellor rather than a trustee. For more information about credit counsellors and trustees refer to this page.
You can get credit again after a bankruptcy or a proposal. The bankruptcy and proposal laws of Canada are intended to give you a fresh financial start. |
After you have been discharged from bankruptcy or completed your proposal, you may be a good credit risk, since you have no debt. Naturally, you will find it a little harder to get credit until you can re-establish a good credit rating. You can get credit again after a bankruptcy or a proposal. The bankruptcy and proposal laws of Canada are intended to give you a fresh financial start. The ability to rebuild credit is part of your fresh financial start.
