What Assets Can Be Kept by a Debtor In Quebec?
Bankruptcy Quebec rules are more detailed than other provinces or territories in Canada. There are more conditions that have been set and more protection for certain kinds of items or disabled people.
For those contemplating a bankruptcy in Quebec a summary of the exemptions are listed below.
Bankruptcy Quebec and a House
A house as defined in Quebec can either be the typical home that is immovable and a movable home which can be an RV etc. To begin with, the stationary home has a zero dollars exemption limit. What that means is that any equity in that home will be seized by a trustee in bankruptcy unless there was a lean on this property. To understand this fully we do recommend that you watch the 5 Video Series on Personal Bankruptcy in Canada which explains this concept in detail.
The movable home, when used as necessary for the bankrupt and their dependents is exempted to a maximum value of $6000 as valued by the trustee in bankruptcy.
Bankruptcy Quebec and General Exemptions
All food items, fuel required for heating, and all clothing items as necessary for the bankrupt and his or her dependents are fully exempt and will not be seized.
Any tools of trade that is needed required for work or income generation is similarly fully exempted. Quebec is the only province in Canada that fully exempts family papers, family portraits, any medals, and decorations. Regardless of the value of these all will be kept by the bankrupt.
Bankruptcy Quebec and Pensions
Whereby an employer or contributes payments into an impending bankrupt’s pension funds, such contributions by an employer is fully exempt.
However, pension contributions made by the employee, or in this case the impending bankrupt, will have contributions made within the last 12 months recovered and handed over to the trustee in bankruptcy. There is no limits as to the amount that can be withdrawn, as long as these contributions were made within the last 12 months.
After the bankruptcy they contributions could be restarted as per norm.
Bankruptcy Quebec Disability and Handicap
Disability benefits that are payable to a person and any expenses that were reimbursed for an accident and is now payable by sickness insurance are fully exempted and will not be seized by a trustee in bankruptcy.
Additionally, any person who is handicap and requires property that assist him in dealing with they are handicap issues, will be similarly fully exempted.