QUEBEC BANKRUPTCY

Canadian economists expressed alarm at the beginning of 2013 when all of the data on Canadian consumer borrowing in 2012 was finally compiled and analyzed. At the end of 2012, the average level of consumer debt in Canada reached a new high of almost $27,500, signaling a new willingness on the part of Canadians to borrow more than what they have borrowed in recent years. Particularly troubling is the fact that 2012 saw an increase in the average annual growth rate of consumer debt in Canada after it had been declining since 2009.

Every province in Canada experienced a rise in average debt levels in the final quarter of 2012 except for British Columbia. The growth rate in Quebec was one of the highest in the nation, and although the average consumer debt in Quebec was roughly $7,500 lower at the end of 2012 than the average consumer debt in Canada, the rapid growth is still concerning.

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 gives 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 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.

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.