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How Long Does Bankruptcy Last In Quebec

How Long Does Bankruptcy Last Over 9 Months

How long does bankruptcy last in Canada?

Conditions that will extend a bankruptcy past 9 months include:

Do You Have Surplus Income?

Bankrupts that have surplus income will have their bankruptcy extended by a period of 12 months.

Surplus income is any income you have over a limit that is set by the government based on the size of your household.

If your income is more than $200 over the limit allowed by the government you will have to pay 50% of the surplus income into your bankruptcy estate and the length of your bankruptcy will be extended by an additional 12 months.

Have You Been Bankrupt Before?

If you have already filed for bankruptcy in the past you will not be eligible for an automatic discharge after 9 months and you will be bankrupt longer than in your first bankruptcy.

Have You Completed Your Duties as a Bankrupt?

If you have not completed your duties as a bankrupt you will not receive your automatic bankruptcy discharge and you will stay bankrupt until you have completed all of the required duties.

Failure to complete your duties will increase the time you are bankrupt and the cost of your bankruptcy filing so it is very important that you complete all duties your Trustee tells you to complete.

Is Your Discharge Opposed?

In rare cases your trustee, your creditors, or the Superintendent of Bankruptcy will oppose your discharge and you must go to court to get your discharge granted.

Equifax And Transunion Credit Reports

Both Equifax and TransUnion maintain a bankruptcy record on your credit report for a period from the date of your discharge or last payment.

For first-time bankrupts, TransUnion maintains the information for the maximum length of time permitted by provincial law , while Equifax retains the information for 6 years for every province.

How Long Do Bankruptcies Stay On Your Credit Report

Filing bankruptcy has a huge impact on your credit report. It allows banks and lenders to determine the value of the risk they are taking in lending you money.

Bankruptcy stays on your credit report for 6 years after your discharge date . For a second bankruptcy, it remains on your credit report for 14 years after the date of your discharge.

The Bankruptcy and Insolvency Act allows a person to obtain new credit when they are released from bankruptcy so you wont have to wait until bankruptcy is removed from your credit report to apply for new credit. You should rather wait between 2 to 3 years after the date of your bankruptcy discharge.

Here are some tips to help you get loans after filing for bankruptcy:

  • Adopt good financial habits
  • Borrow a reasonable amount of money and pay it back on short notice.
  • Make your payments regularly to improve your credit rating.

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How Is Filing For Bankruptcy Different In Quebec

In Quebec, your personal property isnt counted as an asset during the bankruptcy, until it reaches a sellable value of at least $6,500. Unfortunately, in Quebec, there is no automatic lawful protection for cars or home equity, nor for other inclusions that are common in other provinces. For anything to be exempted from being an asset of the bankruptcy, you need to acquire approval from the courts.

To understand what can and cant normally be included during a bankruptcy, .

The Licensed Insolvency Trustee you hire can still value the assets in the bankruptcy, but cannot declare certain or specific assets as exempt. Another major difference is that Quebec exempts the cash value or loans available against an RRSP or life insurance policy held with an insurance company, as long as the beneficiary is a parent, child or spouse of the bankrupt party.

Will you lose your RRSPs if you go bankrupt? Find out here.

Another difference is related to your taxes. When you file your income tax, your tax refunds for the years before the bankruptcy may be considered as an asset. However, in Quebec, your provincial tax refund is not considered an asset of the bankruptcy.

Now that you know some of the important differences between bankruptcies in Quebec and other provinces, lets answer some frequently asked questions about the bankruptcy process in Quebec and how it differs from the rest of Canada.

What Are Bankruptcy Trustee Fees

How Long Does Bankruptcy Last in Canada

All bankruptcy trustee fees are regulated by the federal government and are included as part of your bankruptcy or consumer proposal payments.

Most personal bankruptcies in Ontario are summary administrations. Fees in a summary administration are based on a government tariff set our under Rule 128 of the Bankruptcy & Insolvency Act and are based largely on a percentage of realizations in a bankrupts estate. These fees are paid before distribution is made to the creditors so it is effectively the creditors who are paying the bankruptcy trustees fees. These fees are calculated as:

  • 100% of the first $975
  • 35% up to the next $2,000
  • 50% of receipts over $2,000.
  • Reimbursement for credit counselling fees, filing fees, and administration costs.

You are not required to pay an extra fee to the trustee. The trustee receives their fee out of the monthly contributions you are making. For example, if you are required to pay $200 per month based on your income that is all you pay. There are no extra fees because the trustee receives their fee out of that $200 per month payment.

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Am I Allowed To Have A Bank Account If I Declare Bankruptcy In Canada

If you have more than $999 in your account and want overdraft protection, you must notify your bank that you are bankrupt. In order to prevent creditors from taking money from you, it is recommended that you open a bank account at an institution where you do not owe money. Only use your new bank account and do not use any accounts that were active prior to your bankruptcy.

Bankruptcy Exemptions In Ontario

  • No limit on clothes for you and your family
  • Household furniture, utensils, equipment, food and fuel up to $13,150
  • Tools and instruments used by you in your business up to $11,300
  • One motor vehicle up to $6,600
  • If the equity in your home does not exceed $10,000, your home is exempt if the equity exceeds $10,000, then your home is not exempt from seizure
  • Most pension plans and certain types of life insurance policies
  • RRSPs, except for contributions in the 12 months before the date of bankruptcy
  • For farmers, up to $29,100 for livestock, fowl, bees, books, tools and implements of the trade

For more information on bankruptcy exemptions in Ontario, speak to a local Licensed Insolvency Trustee.

Prince Edward Island bankruptcy exemptions

On Prince Edward Island, property exempt from seizure in bankruptcy is set by the provincial government and applies to the equity in an asset. Equity is the difference between the value of the asset and what you owe on the asset.

Example: If you have a car worth $6,000 and you still owe $3,000 on the loan, the equity you have in the car is $3,000. In P.E.I., the exemption for a car is $6,500. In this case, you are entitled to keep the car and the creditors included in your bankruptcy claim cannot take it from you.

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Bankruptcy Exemptions In Alberta:

  • Enough food for you and your dependants for the next 12 months
  • Clothing for you and/or your dependants up to $4,000
  • Household furnishings and appliances up to $4,000
  • One motor vehicle up to $5,000
  • Tools of your trade up to $10,000
  • No limit on medical and dental aids
  • Your principal residence up to $40,000 if you co-own your home, this amount will be reduced based on how much of the home you own
  • Social allowance, handicap benefit or a widows pension as long as the proceeds from the payment are separate from your other funds
  • RRSPs, RESPs and pensions
  • Certain life insurance policies

What Happens To My Regular Income If I Declare Bankruptcy In Canada

How long does personal bankruptcy last in Canada?

Your wages are not affected by your bankruptcy, but part of your duties during bankruptcy includes providing your trustee with your household monthly earnings and expenditures. Additionally, if your income changes or you gain or lose a dependent, you must inform your trustee.

You may be required to make monthly payments to your trustee. These are called surplus income payments. Your trustee determines whether you have to make surplus income payments based on your average earnings over the bankruptcy and the number of people in your household.

Watch the video below to learn more about surplus income payments.

Video transcript: Meet Stephanie, the mother of a young son, James, who is just about to enter Primary School. Recently, Stephanie has overextended her credit and, despite her best efforts, is unable to pay her bills. Realizing that she needed to speak to an expert, Stephanie found a Licensed Insolvency Trustee located in her area and has gone to meet with her. After speaking to the trustee, Stephanie has determined bankruptcy was the most appropriate option for her.

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Personal Exemptions By Province/territory

Alberta bankruptcy exemptions

In Alberta, property exempt from seizure in bankruptcy is set out in the Civil Enforcement Act and applies to the equity in an asset. Equity is the difference between the value of the asset and how much you owe on the asset.

Example: If you have a car worth $10,000 and you owe $6,000 in car loans, the equity you have in the car is $4,000. In Alberta, the exemption for a car is $5,000. In this case, you have equity of $4,000 and your unsecured creditors cannot take this from you when you file for bankruptcy.

Q If I Pay Accounts Will They Come Off My Credit Report

A. If an account is paid and does not contain any adverse information, the account will remain on your file for twenty years from the last date of activity. This information assists creditors to understand the type of credit you have managed successfully in the past. If you have paid an account that was not paid in agreement with the contract with the lender, this account will report for six years from the date you first became delinquent on the account.

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Are You Getting A Refund

Refunds that are issued as a result of returns for years prior to the year of bankruptcy are considered to be the property of the estate in bankruptcy. As a result, these refunds will be sent to the trustee. Any refunds issued in relation to returns for years subsequent to the year of bankruptcy will be sent to you, unless the trustee has obtained a court order.

For the year of bankruptcy, any issued refund related to the pre-bankruptcy return will be sent to the trustee. Issued refunds related to the post-bankruptcy return will also be sent to the trustee if your bankruptcy assignment date is July 7, 2008, or later. Post-bankruptcy refunds that are issued for bankruptcies with an assignment date prior to that will be sent to you, unless the trustee has obtained a court order or has provided us with an Authorization and Direction letter.

Will My Bankruptcy Affect My Spouse

How Long Does Bankruptcy Stay On Your Credit Report

When filing for bankruptcy, many people are concerned whether the filing will affect their family or spouse at all. Well, the good news is that no, filing for bankruptcy in Quebec doesnt affect your spouse at all. You are responsible for your debts and your spouse is responsible for theirs, even if you are married or in a common-law relationship.

Read this to learn if filing for bankruptcy affects your spouse in other parts of Canada.

However, if your significant other has co-signed your loan, they are just as responsible as you for the loan after you declare bankruptcy. In addition, the bankrupt individual might not qualify as a co-signer in the future, which could indirectly affect the other spouse.

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Are Debt Collectors In Canada Allowed To Keep Calling Me If I Declare Bankruptcy

Once a bankruptcy claim is filed, all creditors and collection agencies are required by law to stop contacting you. Additionally, a creditor cannot garnish your wages.

You can continue to receive calls from secured creditors. This applies to a mortgage, lien on a car, or debt for alimony or maintenance.

How To Declare Bankruptcy In Quebec

The commitments of daily life and unexpected events can have negative impacts on your financial situation. When financial problems are not addressed on time, some people find themselves in a situation of over-indebtedness and do not know how to get out of it.

There are different solutions to eliminate your debt problems and regain control of your life. In this article we explore one possible solution: personal bankruptcy. Before deciding to declare bankruptcy, it is normal to ask yourself several questions. Thats why weve put together a list of the most frequently asked questions to help you get all the information you need about personal bankruptcy.

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What Happens After The Limitation Period Expires

Even though you owe the money until the debt is paid or settled, a debt collectors options are limited when the limitation period expires. At this point, calling and sending collection letters that demand payment before further action is taken are mostly just threats.

However, after the limitations period:

  • Debt collectors can continue to call and ask for payment
  • The debt will remain on your credit report for seven years from the date of last payment

If a debt collector does try to sue you after the limitation period, you can defend the action by notifying the court that the limitation period has expired. Failure to show up in court and plead this defense can result in a judgment favouring the collection agency.

Whether you choose to pay an old debt is up to you. It will fall off your credit after seven years, but collection agencies can still call. If you want to stop the calls, you can offer to settle. Only make this offer if that is what you intend to do. Otherwise, ignore the calls.

Whether the limitation period has passed or not, you have rights when dealing with a debt collector. Debt collectors can only contact your friends, relatives, neighbours, or employer to get your telephone number or address, but they arent allowed to suggest to them that you should pay your debts. They cant use threatening or intimidating language and apply unreasonable pressure to force you to repay the debt.

Bankruptcy Exemptions On Prince Edward Island

How Long Will My Bankruptcy Last In Ontario?
  • No limit on clothing for you and your family
  • No limit on medical or health aids
  • Any motor vehicle needed for transportation to work up to $6,500, or up to $3,000 if not used for work
  • Household furniture, utensils, equipment, food and fuel up to $5,000
  • Tools used by you in your business or trade, up to $2,000

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Q Can You Tell Me What Is On My Report Over The Telephone

A. When you call into the Consumer Relations Centre, you will be asked a number of questions to authenticate your identity. When you have successfully authenticated yourself, we will review your file with you. Due to the confidential nature of credit information, we cannot disclose the contents of your credit report over the telephone if you have failed to answer our authentication questions. Alternatively, you can obtain a free copy of your Consumer Disclosure online through our self-service website. to visit our self-service website.You can also request a copy of your Consumer Disclosure by phone or mail, and it will be mailed to you. To review the options for receiving a copy of your credit report, please refer to the Consumer Disclosure section of our website

Delivery And Sale Of Property

The trustee uses the list of your property to determine with you which property will be sold to pay your creditors. However, some of your property is protected by law, which means that it cannot be taken by your creditors or sold.

For example, you can keep these items:

  • your RRIFs and RRSPs, other than the amounts you paid into them less than 12 months before the bankruptcy
  • up to $7,000 worth of items used for your basic needs and those of your family and are in your main residence. If these items are worth less than $7,000, other personal items can be included until the value amounts to $7,000. You cant keep any items that have a hypothec on them.
  • the food, fuel, towels, sheets and clothing necessary for you and your family
  • the any work equipment you need for your professional activities or occupation, such as a toolbox, computer or even a car, unless there is a hypothec on them.
  • a portion of your salary determined by law

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What Should We Tell Our Licensed Insolvency Trustee During A Personal Bankruptcy Declaration In Quebec

For the best advice, you will have to ensure transparency towards your bankruptcy trustee. You will be required to give him or her a complete picture by addressing all the details of your current financial situation:

  • The amount of your debts
  • The assets you own
  • Any changes of address or income.

In short, you must find a trustee inan honest bankruptcy trustee that will put you in confidence so you share your information safely. Communication is essential for you to keep you abreast of your files progress.

Q What Is A Credit Scorea A Credit Score Is A Statistically Derived Prediction Of An Individuals Credit Risk At A Particular Point In Time Credit Risk Is Typically Defined As The Likelihood Of An Individual Becoming Seriously Delinquent Within A 12

How Long Does Bankruptcy Stay on Your Credit Report in ...

*Quebec Residents:

In order to comply with the Quebec Credit Assessment Agents Act effective February 1, 2021, consumers who reside in the province of Quebec are entitled to see their credit score and score factors on their consumer disclosure. Therefore all consumer disclosures issued to Quebec residents have a score and score factors integrated as part of the consumer disclosure.It is important to regularly review your own credit score to understand how you may be viewed by lenders and other businesses when submitting applications for credit products and services. Get UNLIMITED access to your Credit Score with TransUnion Credit Monitoring.

A credit score is:

Q. Once my credit report is updated, how long before my score is updated?A. Credit scores are calculated when requested by a lender based on the most current information available on your credit file.

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