Perhaps you have seen your debt increase rapidly over the past few years. If you are no longer able to make payments on your debt, it may be time to consider bankruptcy.

Quebec Bankruptcy Information

Bankruptcy in Quebec is for residents whose current income and assets give them no realistic way to ever pay off their debt. This process is designed to give residents a relatively clean start to their finances so that they can escape the weight of high-interest rates, multiple monthly debt payments, debt collector calls, and more.

If you have at least $1,000 in unsecured debt, you can qualify for bankruptcy. Quebec residents, like the residents of the rest of Canada file for bankruptcy through a licensed bankruptcy trustee. If you qualify, the trustee sets up a trust into which all your assets are deposited. There are some exemptions, however, including:

  • necessary clothing, food and fuel for the household
  • financial support awarded as the result of adjudication
  • necessary household furnishings up to a total value of $6,000
  • all tools needed for one’s profession
  • donated or inherited property that has been declared by the giver as exempt.

The trustee administers the trust to make sure that creditors receive at least some of what they are owed. The bankruptcy is discharged, on average, about nine months after the initial filing if the debtor has met all his or her obligations. At that point, the debtor’s debt is erased.

Insolvency & Bankruptcy Statistics in Quebec

Last 8 quarters

Nationwide
Q1 21 Q4 20 Q3 20 Q2 20 Q1 20 Q4 19 Q3 19 Q2 19
Insolvency 23,824 23,364 20,692 19,151 33,212 35,139 34,690 35,061
Bankruptcy 7,320 7,855 7,162 6,410 11,443 13,526 13,753 14,348
Quebec
Q1 21 Q4 20 Q3 20 Q2 20 Q1 20 Q4 19 Q3 19 Q2 19
Insolvency 6,416 6,247 5,542 4,559 10,335 10,840 10,701 10,727
Bankruptcy 2,690 2,827 2,553 2,092 4,242 5,026 5,061 5,135

Source: https://www.ic.gc.ca/

Quebec Bankruptcy Advantages and Disadvantages

Bankruptcy in Quebec may sound difficult, but the process is legal and provides some clear advantages. Having your debt erased lifts a heavy burden off of your shoulders. Furthermore, you will also have to take a mandatory financial education course that will help you manage your finances better in the future and avoid getting into bankruptcy again.

Residents of Quebec should also know about the disadvantages of bankruptcy. Quebec residents will be unable to sit on certain corporate and charitable boards during the process of bankruptcy. Most damaging of all is the fact that bankruptcy destroys your credit for at least seven years. The few creditors who will be willing to extend you credit during that period will charge you extremely high-interest rates.

Learn More Today

Determine if bankruptcy is the right solution for you or if you will be better served by other debt relief options. Fill out the debt relief form for more information.

Is Bankruptcy the Right Option?  

Annual Consumer Insolvency Rates in Quebec

(Per 1,000 Population Aged 18 Years and Older)

Quebec
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Insolvency 5.7 5.6 6.2 6.3 6.6 6.5 6.2 6.2 6.3 3.9
Bankruptcy 4.1 3.8 3.9 3.7 3.7 3.6 3.4 3.1 2.9 1.7
Proposal 1.6 1.8 2.3 2.6 2.9 2.8 2.8 3.0 3.4 2.2
Gaspésie – Îles-de-la-Madeleine
Insolvency 5.2 4.5 5.4 5.5 6.7 7.0 6.1 6.2 6.8 4.2
Bankruptcy 3.8 3.1 3.4 2.9 3.8 3.7 3.1 2.7 2.8 1.6
Proposal 1.4 1.4 2.1 2.5 2.9 3.3 3.0 3.4 4.0 2.5
Bas-Saint-Laurent
Insolvency 4.1 4.3 4.9 5.2 5.5 5.6 5.6 5.6 6.1 3.9
Bankruptcy 2.8 3.3 3.2 3.2 3.2 3.3 3.1 3.1 3.0 1.8
Proposal 1.3 1.1 1.7 2.0 2.3 2.2 2.5 2.5 3.0 2.1
Capitale-Nationale
Insolvency 4.1 4.1 4.4 4.6 5.4 5.4 5.8 5.7 6.1 4.0
Bankruptcy 3.1 3.1 3.1 2.9 3.3 3.2 3.4 3.1 3.1 1.8
Proposal 1.0 0.9 1.3 1.6 2.1 2.2 2.4 2.6 3.0 2.2
Chaudière – Appalaches
Insolvency 3.8 3.7 4.5 4.5 4.8 4.8 4.9 5.2 5.3 3.6
Bankruptcy 2.7 2.6 3.1 2.9 2.8 3.0 2.9 3.0 2.8 1.7
Proposal 1.1 1.1 1.4 1.6 2.1 1.8 1.9 2.2 2.5 1.9
Estrie
Insolvency 5.1 5.3 5.4 5.5 5.9 5.9 5.9 6.0 5.8 3.6
Bankruptcy 4.1 3.9 3.9 3.6 3.8 3.9 4.0 3.7 3.3 1.8
Proposal 1.0 1.4 1.5 1.9 2.1 2.0 2.0 2.3 2.5 1.8
Centre-du-Québec
Insolvency 5.5 4.9 6.2 5.9 6.0 5.7 6.1 5.8 6.1 4.2
Bankruptcy 4.3 3.6 4.0 3.3 3.3 3.5 3.4 2.9 2.9 2.1
Proposal 1.2 1.3 2.2 2.6 2.7 2.3 2.7 2.9 3.2 2.1
Montérégie
Insolvency 5.8 6.1 6.8 6.9 7.0 6.7 6.3 6.4 6.5 4.0
Bankruptcy 4.1 4.0 4.1 3.8 3.7 3.6 3.3 3.1 2.8 1.6
Proposal 1.7 2.1 2.7 3.1 3.2 3.2 3.1 3.3 3.7 2.4
Montréal
Insolvency 5.9 5.4 5.7 5.7 5.7 5.5 5.1 4.9 5.0 3.1
Bankruptcy 4.3 3.8 3.8 3.6 3.4 3.2 2.9 2.6 2.4 1.4
Proposal 1.6 1.6 1.9 2.1 2.4 2.4 2.2 2.3 2.6 1.7
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Laval
Insolvency 6.0 6.2 6.6 6.6 6.7 6.5 6.3 6.0 5.7 3.4
Bankruptcy 4.2 3.9 4.0 3.7 3.5 3.3 2.8 2.7 2.5 1.4
Proposal 1.8 2.3 2.6 2.9 3.2 3.2 3.5 3.3 3.2 2.1
Lanaudière
Insolvency 7.2 7.6 8.6 9.0 9.0 8.5 8.2 8.2 8.0 4.9
Bankruptcy 4.6 4.6 4.5 4.6 4.4 4.4 4.0 3.4 3.2 2.0
Proposal 2.6 3.1 4.0 4.4 4.6 4.1 4.2 4.7 4.8 3.0
Laurentides
Insolvency 8.1 8.1 9.0 9.0 9.4 8.7 8.7 8.5 8.6 4.9
Bankruptcy 5.5 5.0 5.2 4.8 5.0 4.6 4.4 3.9 3.8 2.0
Proposal 2.6 3.2 3.9 4.2 4.5 4.1 4.3 4.6 4.7 2.9
Outaouais
Insolvency 7.2 7.5 8.0 8.6 8.7 8.8 8.4 8.4 8.3 4.9
Bankruptcy 5.0 4.8 5.0 4.9 4.8 4.8 4.4 3.7 3.4 2.0
Proposal 2.2 2.7 3.0 3.7 3.9 4.0 3.9 4.7 4.9 2.9
Abitibi – Témiscamingue
Insolvency 4.3 4.0 4.7 5.9 6.8 6.4 5.9 6.2 6.4 3.8
Bankruptcy 3.2 2.8 3.0 3.6 3.8 3.7 2.8 3.0 2.5 1.3
Proposal 1.2 1.2 1.7 2.3 2.9 2.7 3.1 3.1 3.9 2.5
Mauricie
Insolvency 5.2 5.4 6.1 6.2 7.0 7.1 6.8 6.7 7.3 4.5
Bankruptcy 4.2 4.2 4.4 4.2 4.7 4.7 4.5 4.2 4.3 2.4
Proposal 1.0 1.2 1.7 1.9 2.4 2.4 2.3 2.5 3.0 2.1
Saguenay – Lac-Saint-Jean
Insolvency 4.7 4.3 4.9 5.7 6.1 6.7 6.0 6.2 6.4 4.1
Bankruptcy 3.4 2.9 3.3 3.8 3.6 4.0 3.6 3.7 3.5 2.2
Proposal 1.2 1.3 1.7 1.8 2.5 2.7 2.4 2.5 2.9 1.9
Côte-Nord and Nord-du-Québec
Insolvency 2.9 3.3 3.7 4.4 4.6 6.0 5.3 5.8 5.7 4.2
Bankruptcy 2.3 2.4 2.3 2.9 2.9 3.5 3.2 3.3 3.0 1.9
Proposal 0.5 0.8 1.4 1.5 1.7 2.5 2.1 2.5 2.7 2.3

Source: https://www.ic.gc.ca/
Bankruptcy resources available in your City: