FAQ Individuals

An IAS is a professional authorized by the federal government to administer insolvency proceedings, such as bankruptcies or consumer proposals. BRESSE provides non-judgmental, respectful and humane support.

No. Consulting a trustee doesn't mean you have to declare bankruptcy. It's a step toward assessing your situation and knowing all your options: proposal, consolidation, informal agreement or other.

You won't lose all your assets if you declare bankruptcy, since the law protects some of them, such as your RRSPs and, in some cases, your vehicle. Our trustees will help you understand what you keep and what could be affected.

Costs vary according to your situation. At BRESSE, the first meeting is free. We'll explain the costs associated with each solution.

An initial bankruptcy can last as little as 9 months, depending on your income and your collaboration. We'll guide you every step of the way.

Yes, but temporarily. The bankruptcy or proposal will have an impact on your file, but it also allows you to start afresh and rebuild your credit.

In some cases, yes. Our trustees can analyze your file to verify whether these debts are admissible under the law.

Yes, a personal bankruptcy or proposal does not prevent you from traveling, including internationally. In most cases, your mandatory follow-up meetings can be held by videoconference.

No. The filing of a consumer proposal or bankruptcy suspends, among other things :

Wage seizures
-Seizures of movable property
-Seizures of vehicles
-Other seizures by your creditors

In the event of a consumer proposal, your assets are not seized, so don't worry about your RRSPs and other investments.

If you opt for personal bankruptcy, your RRSPs are exempt from seizure, except for contributions made in the last 12 months under certain conditions.

These are the two main solutions governed by the Bankruptcy and Insolvency Act, and only a licensed insolvency trustee can administer them - but they do not address the same situations.

Personal bankruptcy wipes out your debts quickly and definitively. The process generally takes 9 months for a first bankruptcy. You will have to hand over certain assets to your trustee, but the law protects many of them: your car (under certain conditions), your RRSPs and your essential personal property. This is often the most appropriate solution when debts are high and repayment capacity is limited.

A consumer proposal, on the other hand, allows you to repay only a portion of your debts - depending on what you can actually afford - and avoid bankruptcy. Interest is frozen at 0%, payments are spread over a period of up to 5 years, and you keep all your assets. This is an agreement negotiated by your trustee with your creditors.

The impact on your credit file is different for each, as are the eligibility requirements. At BRESSE, we take the time to analyze your situation with you, free of charge and in complete confidentiality, to recommend the option best suited to your reality.

No, absolutely not. Consulting a licensed insolvency trustee like BRESSE is simply an information process - it does not commit you to anything and does not trigger any proceedings.

Many of the people who consult us do not go bankrupt. Our role is first to analyze your situation: your income, your debts, your assets. Based on this picture, we present you with all available options, including solutions that don't involve bankruptcy, such as a consumer proposal, an informal agreement with your creditors or simply a budget plan.

Consulting early gives you the most choice. The longer you wait, the more options are closed to you. The first meeting at BRESSE is free, confidential, and you leave with a clear vision of the situation - without pressure, without judgment.

This is one of the most frequently asked questions, and we understand perfectly. The answer is no - your loved ones will not be automatically informed.

Only your creditors (the people or institutions to whom you owe money) receive an official notice. Your employer is not contacted, unless you owe him money directly.

Bankruptcy and consumer proposals are registered with the Office of the Superintendent of Bankruptcy, a federal public registry, and with your credit report. But in general, no one in your personal or professional circle consults these registers. So it's quite possible to go through this process with the utmost discretion.

At BRESSE, confidentiality is a fundamental value. All our meetings and exchanges are treated with the same respect and discretion you would expect from a trusted professional.

This question is at the heart of many of our customers' concerns, and deserves a clear answer.

With a consumer proposal, your home is fully protected. You continue to make your mortgage payments as usual, and the proposal deals only with your unsecured debts (credit cards, lines of credit, personal loans, tax debts, etc.).

In the case of personal bankruptcy, the situation depends on the equity in your property - that is, the difference between the market value of your home and what you still owe on your mortgage. If this equity is low or non-existent, you can often keep your home by continuing to pay your mortgage. If the equity is significant, your trustee will explain the options available to you before you make any decisions.

The golden rule at BRESSE: you'll know exactly what can be affected before you sign anything. No surprises.

This is a legitimate concern, and the figures vary from credit bureau to credit bureau:

Equifax: the bankruptcy remains on your file for 6 years after your discharge (in the case of a first bankruptcy). TransUnion: it remains on file for 7 years. The period is longer in the case of multiple bankruptcies.

For a consumer proposal, the impact is generally less: the mention remains on your file for 3 years after full payment of the proposal.

It's important to remember that uncontrolled indebtedness also harms your credit - often severely. For many people, bankruptcy or proposal is actually the starting point for rebuilding credit, not an end in itself. Concrete advice on rebuilding your credit rating is part of the support we offer at BRESSE.

Yes, in most cases. This is one of the most frequently asked questions - and one of the most surprising for many people.

Debts owed to Revenu Québec and the Canada Revenue Agency (CRA) are generally dischargeable debts, just like your credit card or personal loan debts. They may be included in a personal bankruptcy or a consumer proposal.

As soon as your file is filed, an automatic suspension takes effect: Revenu Québec and the CRA must immediately cease all collection efforts, including wage garnishments and demand letters.

However, some tax debts arising from fraud or misrepresentation may be exceptions. Our trustees at BRESSE analyze your tax file carefully to give you a complete and accurate picture of what will be released.

Yes, and this is one of the most immediate and tangible effects of the legal protection afforded by insolvency.

As soon as a bankruptcy or consumer proposal is officially filed, the law triggers an automatic stay of proceedings. In concrete terms, this means that: calls from creditors and collection agencies must cease immediately, ongoing wage garnishments are suspended, lawsuits are blocked, and bank account seizures stop.

This process can be put in place quickly - sometimes in as little as a day - once you consult a trustee at BRESSE and decide to go ahead. If you're experiencing intense pressure from your creditors right now, that's exactly why we encourage you to call us right away. The first consultation is free of charge.

Absolutely. Being self-employed or a business owner does not change your access to personal insolvency solutions.

If you're self-employed or a sole proprietor, you're personally responsible for your company's debts. This means that your business debts (suppliers, business credit cards, business loans, GST/QST debts) can often be included in a personal bankruptcy or consumer proposal, depending on your situation.

For incorporated businesses (inc.), there are separate solutions such as a proposal or commercial bankruptcy, which our BRESSE trustees also administer.

In all cases, the first step is the same: a free meeting to analyze your personal and professional situation and identify the most advantageous path for you.

This is an important distinction that many people are unaware of, and it can have a direct impact on the quality of the help you receive.

A financial recovery advisor is a generic term. He or she may be employed by a firm without necessarily holding a federally regulated professional license. They can advise you on your budget or general situation, but do not have the legal authority to file a bankruptcy or consumer proposal on your behalf.

A Licensed Insolvency Trustee (LITI) is an officer of the court appointed and regulated by the Office of the Superintendent of Bankruptcy Canada. He or she is the only professional legally authorized to administer a bankruptcy or consumer proposal. He or she can formally negotiate with your creditors, trigger the automatic stay of proceedings and represent you throughout the process.

At BRESSE, you meet directly with licensed insolvency trustees and associate insolvency administrators - professionals licensed and/or registered with the Office of the Superintendent of Bankruptcy. The firm has 30 years of expertise in the Quebec City region.

The first consultation at BRESSE is completely free and without obligation. You leave with a clear analysis of your situation and an honest recommendation - whether you choose to go ahead with us or not.

For personal bankruptcies, the trustee's fees are governed by law. They are established according to a schedule regulated by the Office of the Superintendent of Bankruptcy, based on your income and the value of your assets. Nothing is arbitrary, except for the basic fee in certain cases.

For a consumer proposal, the trustee's fees are paid directly from the amounts paid to your creditors - so they're not added to your monthly payment. You pay a fixed amount per month, with no hidden charges and no interest.

Cost transparency is part of our commitment to you. We'll explain all the costs associated with each option before you make any decisions. No surprises.

They're exactly the same professional. The title "trustee in bankruptcy" was the common name for decades. It has now been officially replaced by "authorized insolvency trustee" to better reflect the true scope of the role - which goes far beyond bankruptcy. A licensed insolvency trustee can propose several solutions to settle your debts, including a consumer proposal, an informal agreement with your creditors and, if necessary, personal bankruptcy. He is the only professional authorized by law to administer these procedures in Canada.

Not usually. In a consumer proposal, you keep all your assets, including your vehicle. No assets are seized. In the case of personal bankruptcy, the situation depends on the value of your vehicle and your province of residence. In Quebec, a vehicle of reasonable value, necessary to get you to work, is generally protected. If your vehicle is financed and you continue to make payments, you can usually keep it as well. Your authorized trustee will explain exactly what applies to your situation before you make any decisions.

No. As soon as a personal bankruptcy or consumer proposal is officially filed, an automatic stay takes effect. This legal protection prevents your landlord from initiating or continuing eviction proceedings based on rent arrears that accrued before the filing.
This means that rent owed prior to the filing may be included in your bankruptcy or proposal. For future rent, you must continue to pay as usual—your lease remains in effect, and your landlord cannot evict you solely because you have filed for bankruptcy or made a proposal. At BRESSE, we explain your rights and obligations in detail before you file anything.

No. Once a bankruptcy petition or consumer proposal is officially filed, the automatic stay also applies to Hydro-Québec. They cannot cut off your service solely because of debts incurred before the filing.
Debt owed to Hydro-Québec that predates the filing is treated as an ordinary debt and may be included in your bankruptcy or proposal. To keep your service active after the filing, you simply need to pay your new electricity bills as they arrive. Hydro-Québec may, however, require a reasonable security deposit as a condition for maintaining service—your trustee will advise you on how to handle this situation.