How to file for bankruptcy in Quebec? Here are the 8 steps you must know

What are the steps involved in a personal bankruptcy?

1. Booking an appointment

   It all starts with booking an appointment with one of our Licensed Insolvency Trustees. They can assess your financial situation with you and explain the available solutions to settle your debts. Before your appointment, you must gather certain documents. We created a list (see below).

2. The preliminary meeting

   You take time to assess your financial situation with your counsellor. Personal bankruptcy is not the only solution. A consumer proposal or debt consolidation might suit you better. The goal is to find the best solution for you.

3. Signing the documents

   If bankruptcy is the best solution for you, you must sign certain documents. This step officially launches the procedure.

4. Filing for bankruptcy

   The trustee submits your file to the Office of the Superintendent of Bankruptcy. From that moment on, your creditors can no longer call you or take you to court. You’re no longer required to speak to them and the trustee will take care of everything.

5.  The notice to creditors

   A few days after filing for bankruptcy, the trustee will inform all of your creditors. In certain cases, a creditors’ meeting will take place. However, this is quite rare.

6. The first consultation

   You must attend the first meeting to go over your financial habits. Your counsellor will share some advice on how to better manage your money, draw up a budget, and avoid falling back into debt.

7. The second consultation

   During your second meeting, you will discuss the causes behind your debts and how to rebuild your credit. You’ll also learn how to avoid ending up in a difficult situation again.

8. Discharge from your debts

   Filing for bankruptcy requires courage, but it can also allow you to start over. Once you’ve been discharged from your debts, you’ll receive an official certificate. This allows you to wipe the slate clean and rebuild your credit score.

What documents do I need to file for bankruptcy?

You must bring certain documents to your first meeting with your trustee, which will allow them to analyze your financial situation.

Required documents

• Proof of identity (driver’s license or health insurance card, for example).
• Proof of income (payslip, for example).
• Previous year’s tax return and/or assessment notice. If you’re a self-employed worker, you can bring proof of income rather than a payslip.
• Previous month’s bank statement.
• Information regarding your investments and/or RRSP.
• Copies of debt account statements (credit card, cellphone, vehicle, furniture, etc.)

If you have a vehicle

• Registration and proof of insurance for your vehicle(s).
• Purchase agreement for your vehicle(s).

If you own a house or condominium

• Mortgage statement.
• Municipal tax bill.

If you don’t have all of these documents, simply bring as much information as possible.

Have you filed for bankruptcy before? If this is your second bankruptcy or more, the process will take longer. Speak with your advisor to learn all the details.