Filing Bankruptcy: How to File Bankruptcy in Quebec
Many Canadians will struggle with financial difficulties at some point during their life.
If you are struggling with debt and money problems, bankruptcy might be the best way to get a fresh financial start.
Regardless of the reasons you are considering filing bankruptcy, our trustees can help you find a solution to your money problems.
Filing bankruptcy is intended to give an honest but unfortunate debtor a fresh start by clearing out your unsecured debt and putting an end to creditor harassment.
What are the Benefits of Filing Bankruptcy?
Filing for bankruptcy can be an incredibly stressful and emotional experience.
Most people dread the thought of filing bankruptcy.
While it is true that bankruptcy is often a last resort, there are many benefits of bankruptcy for debtors with nowhere else to turn.
Getting your bankruptcy discharge is what provides most of the benefits of bankruptcy so it is important that you follow your trustees’ directions.
You must also complete all of your required bankruptcy duties before you will receive your automatic discharge from bankruptcy.
Bankrupts will benefit from going bankrupt in the following ways:
- Collection calls will stop;
- Wage garnishments and any lawsuits against you will end;
- Most of your unsecured debt will be wiped out;
- You will receive a fresh financial start. Life after bankruptcy will be better than before, and you will have a chance to rebuild credit and qualify for a mortgage or car loans at the same rates as someone has not previously filed bankruptcy. Bankruptcy is intended to give you a fresh start free of the burden of debt.
To learn more about filing bankruptcy in Quebec you can browse our step by step guide on Canadian bankruptcies.
Realize That You Need Help With Your Debt
Before filing bankruptcy you must accept your debt problems and realize that you cannot work out your debt issues on your own.
Whatever the reasons for your debt struggles we can help find the right solution.
Warning signs of financial difficulties that will likely lead to bankruptcy include:
- You are behind on payments for your most important loans, such as your mortgage;
- Your credit cards are over the limit;
- You are using credit for everyday expenses;
- Legal action is being taken against you to collect on your debt;
- Your wages are being garnished;
- Your debt has been referred to a collection agency, who is harassing you for payment.
In these cases your money problems are becoming out of control and you need help.
The first step in dealing with your debt is to explore all of the debt relief options that are available to you.
Did You Know?
- Over 100,000 people file bankruptcy or make a consumer proposal each year;
- Only a Licensed Insolvency Trustee can help you go bankrupt or make a consumer proposal.
Choose a Government Licensed Insolvency Trustee to Help You With Quebec’s Bankruptcy Law
In order to file bankruptcy or to make a consumer proposal to your creditors you need a Licensed Insolvency Trustee.
This is because only a LIT is licensed by the Canadian government to administer to insolvencies – ie, bankruptcy or a consumer proposal.
Your trustee will meet with you to learn about your debt situation and then explain the options available to you.
For some debtors, the best route out of debt will be a bankruptcy alternative such as a proposal.
For some other debtors, the trustee will recommend filing bankruptcy as the quickest and most affordable way for an “honest but unfortunate debtor” to get out of debt.
Once you have filed bankruptcy, the trustee will be with you every step of the way.
Therefore, you must be comfortable with your LIT. When choosing a licensed insolvency trustee make sure you:
- Choose a trustee that is friendly, answers all of your questions, and returns your phone calls in a timely manner;
- Choose a trustee that is in your local area and is easy to access. If you live in a remote area, it is possible to file bankruptcy online / over the phone.
BankruptcyQuebec helps you connect with the highest rated Insolvency Trustees in your local area.
Not Sure where to Look for a Trustee?
All of our Quebec bankruptcy experts are experienced licensed insolvency trustees.
We can help you get out of debt and get a fresh start.
Learn more by scheduling a free evaluation meeting with a member of our friendly team today!
- Bankruptcy gives you a fresh start!
- You are able to keep your car, home and other assets.
- Filing bankruptcy is a legal process that stops wage garnishments, collection calls and all creditor harassment.
Schedule a FREE Consultation With a Trustee to Review Your Bankruptcy Options
Once you have located a trustee in your area the next step is to contact them to schedule your FREE initial consultation.
Things such as your income, expenses, debt and assets could have an impact on whether declaring bankruptcy or an alternative to bankruptcy is the best solution for you.
For this reason, your trustee will ask you to bring some details about your financial situation.
At the initial consultation your trustee will review your debt and the causes for your money problems.
The trustee will answer your questions and provide information on filing bankruptcy and alternatives to bankruptcy such as a consummer proposal.
The trustee will provide their help and advice but the final decision will be up to you.
Your trustee cannot force you into bankruptcy or to accept their advice or suggestions.
Your trustee also won’t pressure you into making a decision.
Did You Know?
- All consultations with a licensed insolvency trustee are confidential and carry no obligation.
- In some cases, the trustee can help you avoid bankruptcy and get out of debt without using their services.
Meet a Trustee for a Free Consultation and get the insight you need.
Call (888) 555-3022
Sign the Paperwork & File Bankruptcy With Your Trustee
After meeting with the trustee take some time to review their advice and think over what they told you.
If you decide that declaring bankruptcy is the way you would like to proceed the trustee will give you a bankruptcy form to fill out.
The trustee requires certain information to file the bankruptcy paperwork:
Your name, address, date of birth;
A list of your creditors;
A list of your assets.
Once your trustee has the necessary information they will prepare your bankruptcy paperwork.
Before you sign the paperwork, the trustee will again review the bankruptcy process and what to expect.
Once you are ready, you can sign the paperwork and the trustee will submit it to the OSB and the bankruptcy will start.
The automatic stay of proceedings will come into play as soon as you’ve filed bankruptcy.
This means collection calls, lawsuits and wage garnishments will stop.
Did You Know?
You can be discharged from bankruptcy in as short a time period as 9 months.
What Happens During My Bankruptcy?
Once you have filed your bankruptcy paperwork a stay of proceedings will automatically come into place.
This powerful legal protection ends lawsuits, wage garnishments and all contact from your unsecured creditors.
Your trustee will file your bankruptcy paperwork with the creditors included in your bankruptcy (only most unsecured creditors are included in your bankruptcy).
The creditors must then file a claim to be included in the payments from your bankruptcy.
During the bankruptcy your trustee will file your outstanding tax returns.
Any debts owed to the CRA, including taxes, penalties and interest, will be included in your bankruptcy.
During the bankruptcy process you will be required to complete certain duties in order to receive your automatic discharge.
These bankruptcy duties include filing a monthly income and expense statement with your trustee and attending two sessions on credit counselling.
Did You Know?
- Filing bankruptcy immediately halts most creditors from taking your wages.
- Your Trustee will deal with your unsecured creditors on your behalf.
Life After Filing For Bankruptcy
After you have completed your bankruptcy duties and been in bankruptcy the required amount of time you will receive your automatic discharge.
Getting your bankruptcy discharge is what clears you of obligation to repay your debts so it is very important you complete your duties and make the required payments on time.
Most bankrupts are automatically discharged from bankruptcy in 9 months.
Once you have received your bankruptcy discharge your unsecured debt such as credit card bills are eliminated.
Minor exceptions such as child support, and alimony debt, will not be discharged.
Your trustee would have pointed this out before you filed the paperwork so it won’t be a surprise.
Most bankrupts receive their discharge in 9 months so they can begin rebuilding their life and repairing their credit 9 months after initially filing the bankruptcy paperwork.
Life after bankruptcy is often much better for the person as they can begin rebuilding their life.
Getting a mortgage or car loan after filing bankruptcy is possible at competitive rates within as little as 2 years.
Your trustee will give you strategies and advice on repairing and rebuilding good credit.
Ready to Get Out of Debt?
Get a Free & Confidential Consultation with a Licensed Trustee.
Call (888) 555-3022