Paying Off Debts While Keeping Your Home and Car
Your Assets Protected · April 2026 · 6-minute read
By the BRESSE Syndics Team – Licensed Insolvency Syndics – Greater Quebec City Area
“If I go bankrupt, will I lose my house and my car?”
Fear is the number one thing that keeps people from seeking medical care—and it’s often exaggerated.
In Quebec, many types of property are protected by law, and there are ways for you to keep everything. Here’s the truth, straight up.
The fear of losing everything is probably the biggest obstacle preventing people from seeking help. The reality is much more nuanced—and often much more reassuring.
The consumer’s proposal: You keep everything
With a consumer proposal, you keep all of your assets—your home, car, RRSP, bank accounts, and furniture. Absolutely nothing is seized or sold. That’s precisely why the consumer proposal has become the most popular solution in Quebec: it allows you to settle your debts while keeping what matters most.
💡 Keep Your Home Without Compromising
As long as you continue to make your mortgage and auto loan payments, those assets are not affected by a proposal. You continue to make your payments as usual, and only your unsecured debts (credit cards, lines of credit, personal loans) are affected.
Bankruptcy: What the Law Protects
Even if you go bankrupt, you don’t lose everything. Quebec law designates several types of property as exempt from seizure:
- Your furniture and essential household belongings, up to a value of $6,000.
- Your clothes and those of your family.
- The tools you need to do your job.
- Your RRSPs, excluding contributions made in the last 12 months.
- Your car, up to a certain value, especially if you need it for work.
What about the bankrupt company?
When it comes to your home, the key factor isequity —the value of your property minus the outstanding balance on your mortgage. If you have little or no equity, you can usually keep your home by continuing to make your mortgage payments.
If you have significant equity, this is often a sign that a settlement would be preferable to bankruptcy —precisely to protect that value.
⚠ Never transfer your assets before consulting with a professional
Some people, out of fear, transfer their assets to a loved one before filing for bankruptcy. This is a serious mistake: these transfers can be reversed and may expose your loved ones to legal action. The right approach is to consult a bankruptcy trustee before taking any action—there is almost always a legal way to protect what matters most.
Comparison: What do you keep?
Home
Proposal: Retained
Bankruptcy: On an Equitable Basis
Car
Proposal: Retained
Bankruptcy: Based on value / need
RRSP
Proposal: Retained
Bankruptcy: Protected (except for the last 12 months)
Furniture
Proposal: Retained
Bankruptcy: Protected up to $7,000
Work Tools Work
Proposal: Retained
Bankruptcy: Protected Parties
Are you afraid of losing what matters most?
Before letting fear paralyze you, talk to a debt counselor. In most cases, there’s a way to settle your debts while keeping your assets. The first consultation at BRESSE is free and requires no commitment.
bresse.com – 1 844 890-6767
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