What are the 8 steps of a personal bankruptcy in Quebec?

Your problem of over-indebtedness is not insurmountable. Let a professional in financial turnaround help you make an informed choice among the various solutions available to you:

  • Debt consolidation
  • Mortgage Refinancing
  • Consumer proposal
  • etc.

If you opt for a personal bankruptcy, your expert will accompany you at each stage along your path towards better financial health.


Here are the 8 steps of a bankruptcy burst


While personal bankruptcy may seem long and tedious, be aware that with the assistance of a seasoned trustee in bankruptcy, you will have peace of mind. Most of the time, the steps follow one another without problems and quickly.


  1. Contact a trustee in bankruptcy for a free consultation

A trustee in bankruptcy is a professional who has all the expertise required to provide you with all the appropriate advice and to help you find the right solution for your financial situation.

Your professional will take stock of the current state of your finances taking into account, among other things, your budget and your debts.

He will present you the various possible solutions as

  • Personal bankruptcy
  • The proposal
  • The consumer proposal
  • Voluntary deposit …

It will explain you in a simple way, but specify what differentiates them from each other as to their advantages and their repercussions so that you can choose the solution that suits you best.

When your choice is fixed, he will explain the next steps and will accompany you.


  1. The declaration of bankruptcy

A trustee in bankruptcy is a professional duly mandated by the Act to make the official declaration of your personal bankruptcy.

If, following your information meeting, you decide to declare bankruptcy, the official forms will be completed by your trustee.

When you sign them, your personal bankruptcy file will be filed with the Office of the Superintendent of Bankruptcy (OSB).

From then on, your personal bankruptcy will be officially declared . As a result, your creditors will have to deal directly with your trustee in bankruptcy .

From this point on, you can stop paying the amounts required by your creditors.


  1. The sale of your seizable property and the payment of the sums to the trustee


It is the role of the trustee in bankruptcy to determine which of your assets will be sold to repay your creditors. The money raised will be placed in trust and then distributed equitably to your creditors.

However, you will be able to keep certain property protected by law (food, specific furniture, instruments necessary for the exercise of your profession, alimony, certain benefits …)

In addition, additional amounts must be paid monthly to your trustee. These amounts will also be given to your creditors.


  1. The trustee sends a notice of bankruptcy to your creditors


If the value of your assets or debts is large, it may happen, but it is not common, that your creditors ask for a meeting to be held to inform them about the bankruptcy. certify the assignment of a trustee and give him information or direction and appoint inspectors who will control the management of the assets.

If a meeting of creditors takes place , you are obliged to attend.

Otherwise, your creditors will simply be informed of the value of your property, your debts and your monthly budget, which will give them a clear understanding of your financial situation.


  1. The Office of the Superintendent of Bankruptcy may want to meet you


It may also happen that a BSF representative asks to meet with you to ask you questions about the reasons for your bankruptcy, your actions, about particular debts, or about the “loss” or disposition of your assets. . You must answer, under oath, the questions that will be asked.


  1. Two (2) consultation sessions

    consultation sessions

You will have to attend two (2) meetings with a financial advisor to reorganize your finances.

At the first meeting , it will discuss the distribution of your budget, the use of credit and other deferred payment of bills and your consumption habits.

The second session will identify all the circumstances that led you to declare your bankruptcy and establish a plan of action to get you back on track.


  1. Report prepared at the request of the BSF by your trustee in bankruptcy

Depending on your situation, the BSF may request a report from your trustee in bankruptcy about:

  • your finances
  • reasons that led you to declare bankruptcy
  • the importance you have given to the settlement of your debts
  • of your behavior before and after the filing of your personal bankruptcy
  • etc.


  1. Release your bankruptcy


If you have fulfilled all your obligations and passed through each of the steps mentioned successfully, you are now free from your erasable debts.

How long does a personal bankruptcy last after filing your file?

First bankruptcy Second bankruptcy
9 months 24 months
If you have to pay additional amounts for excess income
21 months 36 months






Do you consider declaring bankruptcy? Consider your different options

Do you consider declaring bankruptcy? Consider your different options

Reset your credit without further delay. Do not let your debts undermine your peace of mind.

Find a financial advisor, a trustee in bankruptcy or even a mortgage broker (if you want to take out a mortgage despite your bankruptcy) who will guide you and accompany you along the road to improved financial health.

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