After a few years in which it appeared that Canadians were cutting back on their consumer debt and even paying it down, things now appear to be moving in a different direction. Consumer debt has been steadily increasing over the last few years. Consumer proposals in Quebec, according to the Office of the Superintendent of Bankruptcy, have gone up 12% between August 2021 and August 2022.
If you are a resident of Quebec and your consumer debt has increased at or near that rate, then you are experiencing firsthand the havoc this can wreak on your own finances. You may feel as if you will be crushed fully and finally by your consumer debt, but that does not have to be the case. Regardless of where you live in Quebec, there are ways to get your debt under control and even pay it off. One of these is the Quebec consumer proposal.
The Basics of a Consumer Proposal in Quebec
Like most debt solutions available to Canadians who want to make real headway in paying off their creditors, the consumer proposal is designed to reduce the total amount of debt that you owe. Unlike other debt solutions in Canada, however, you are entering a binding legal agreement when you set up a consumer proposal. Quebec residents who choose this debt solution must abide by the terms of the proposal for it to remain in force and to continue enjoying its protections.
To set up a consumer proposal you must enlist the services of a licensed bankruptcy trustee. The trustee negotiates on your behalf with your creditors in order to get them to accept your debts as paid in full for less than what you owe. They also work to get your interest charges frozen. As a result, a successful proposal ends up settling your debt for far less than what you owe. The terms of the consumer proposal in Quebec can be met either through a payment plan or one lump-sum payment to your creditors via the trustee.
Is a Quebec Consumer Proposal Right for Me?
Deciding whether a consumer proposal is the right option for you depends on many factors, including the amount you owe, the impact you are willing to accept on your credit report and more. A key advantage of the consumer proposal is that it helps people with a large amount of debt who do not qualify for a Canadian debt settlement program or another method. If you owe up to $250,000 in unsecured debt, you qualify for the consumer proposal. The limit is $500,000 for married couples who file jointly.
Another advantage of a consumer proposal is that it costs less than declaring bankruptcy but delivers the same results. Debt collectors will stop calling you, and your assets will be protected with a legal consumer proposal. Quebec residents, however, should know that a consumer proposal also produces almost the same effect on your credit as a bankruptcy. In other words, it stays on your credit report for up to seven years and makes it almost impossible to qualify for new loans during that period.
Insolvency & Consumer Proposal Statistics in Quebec
Learn More Today
There is much more to learn about the advantages and disadvantages of a consumer proposal. You may want to consider a more credit-friendly debt solution such as debt settlement. Fill out the debt relief form for a free consultation that will assess your options.
Annual Consumer Insolvency Rates in Quebec
(Per 1,000 Population Aged 18 Years and Older)
| Quebec | ||||||||
|---|---|---|---|---|---|---|---|---|
| ’15 | ’16 | ’17 | ’18 | ’19 | ’20 | ’21 | ’22 | |
| Insolvency | 6.6 | 6.5 | 6.2 | 6.2 | 6.3 | 3.9 | 3.3 | 3.7 |
| Bankruptcy | 3.7 | 3.6 | 3.4 | 3.1 | 2.9 | 1.7 | 1.4 | 1.3 |
| Proposal | 2.9 | 2.8 | 2.8 | 3.0 | 3.4 | 2.2 | 1.9 | 2.4 |
| Gaspésie – Îles-de-la-Madeleine | ||||||||
| Insolvency | 6.7 | 7.0 | 6.1 | 6.2 | 6.8 | 4.2 | 3.9 | 4.0 |
| Bankruptcy | 3.8 | 3.7 | 3.1 | 2.7 | 2.8 | 1.6 | 1.7 | 1.0 |
| Proposal | 2.9 | 3.3 | 3.0 | 3.4 | 4.0 | 2.5 | 2.2 | 3.0 |
| Bas-Saint-Laurent | ||||||||
| Insolvency | 5.5 | 5.6 | 5.6 | 5.6 | 6.1 | 3.9 | 3.6 | 4.0 |
| Bankruptcy | 3.2 | 3.3 | 3.1 | 3.1 | 3.0 | 1.8 | 1.6 | 1.4 |
| Proposal | 2.3 | 2.2 | 2.5 | 2.5 | 3.0 | 2.1 | 2.0 | 2.6 |
| Capitale-Nationale | ||||||||
| Insolvency | 5.4 | 5.4 | 5.8 | 5.7 | 6.1 | 4.0 | 3.4 | 3.7 |
| Bankruptcy | 3.3 | 3.2 | 3.4 | 3.1 | 3.1 | 1.8 | 1.4 | 1.2 |
| Proposal | 2.1 | 2.2 | 2.4 | 2.6 | 3.0 | 2.2 | 2.0 | 2.5 |
| Chaudière – Appalaches | ||||||||
| Insolvency | 4.8 | 4.8 | 4.9 | 5.2 | 5.3 | 3.6 | 3.3 | 3.5 |
| Bankruptcy | 2.8 | 3.0 | 2.9 | 3.0 | 2.8 | 1.7 | 1.4 | 1.1 |
| Proposal | 2.1 | 1.8 | 1.9 | 2.2 | 2.5 | 1.9 | 2.0 | 2.3 |
| Estrie | ||||||||
| Insolvency | 5.9 | 5.9 | 5.9 | 6.0 | 5.8 | 3.6 | 3.5 | 3.6 |
| Bankruptcy | 3.8 | 3.9 | 4.0 | 3.7 | 3.3 | 1.8 | 1.6 | 1.6 |
| Proposal | 2.1 | 2.0 | 2.0 | 2.3 | 2.5 | 1.8 | 1.9 | 2.1 |
| Centre-du-Québec | ||||||||
| Insolvency | 6.0 | 5.7 | 6.1 | 5.8 | 6.1 | 4.2 | 3.6 | 4.0 |
| Bankruptcy | 3.3 | 3.5 | 3.4 | 2.9 | 2.9 | 2.1 | 1.6 | 1.6 |
| Proposal | 2.7 | 2.3 | 2.7 | 2.9 | 3.2 | 2.1 | 2.0 | 2.4 |
| Montérégie | ||||||||
| Insolvency | 7.0 | 6.7 | 6.3 | 6.4 | 6.5 | 4.0 | 3.3 | 3.5 |
| Bankruptcy | 3.7 | 3.6 | 3.3 | 3.1 | 2.8 | 1.6 | 1.3 | 1.1 |
| Proposal | 3.2 | 3.2 | 3.1 | 3.3 | 3.7 | 2.4 | 2.0 | 2.4 |
| Montréal | ||||||||
| Insolvency | 5.7 | 5.5 | 5.1 | 4.9 | 5.0 | 3.1 | 2.5 | 2.8 |
| Bankruptcy | 3.4 | 3.2 | 2.9 | 2.6 | 2.4 | 1.4 | 1.1 | 1.0 |
| Proposal | 2.4 | 2.4 | 2.2 | 2.3 | 2.6 | 1.7 | 1.4 | 1.7 |
| ’15 | ’16 | ’17 | ’18 | ’19 | ’20 | ’21 | ’22 | |
| Laval | ||||||||
| Insolvency | 6.7 | 6.5 | 6.3 | 6.0 | 5.7 | 3.4 | 2.9 | 2.9 |
| Bankruptcy | 3.5 | 3.3 | 2.8 | 2.7 | 2.5 | 1.4 | 1.3 | 1.1 |
| Proposal | 3.2 | 3.2 | 3.5 | 3.3 | 3.2 | 2.1 | 1.6 | 1.8 |
| Lanaudière | ||||||||
| Insolvency | 9.0 | 8.5 | 8.2 | 8.2 | 8.0 | 4.9 | 4.0 | 4.6 |
| Bankruptcy | 4.4 | 4.4 | 4.0 | 3.4 | 3.2 | 2.0 | 1.6 | 1.6 |
| Proposal | 4.6 | 4.1 | 4.2 | 4.7 | 4.8 | 3.0 | 2.4 | 3.1 |
| Laurentides | ||||||||
| Insolvency | 9.4 | 8.7 | 8.7 | 8.5 | 8.6 | 4.9 | 3.8 | 4.0 |
| Bankruptcy | 5.0 | 4.6 | 4.4 | 3.9 | 3.8 | 2.0 | 1.6 | 1.4 |
| Proposal | 4.5 | 4.1 | 4.3 | 4.6 | 4.7 | 2.9 | 2.2 | 3.0 |
| Outaouais | ||||||||
| Insolvency | 8.7 | 8.8 | 8.4 | 8.4 | 8.3 | 4.9 | 4.1 | 4.4 |
| Bankruptcy | 4.8 | 4.8 | 4.4 | 3.7 | 3.4 | 2.0 | 1.7 | 1.4 |
| Proposal | 3.9 | 4.0 | 3.9 | 4.7 | 4.9 | 2.9 | 2.5 | 2.7 |
| Abitibi – Témiscamingue | ||||||||
| Insolvency | 6.8 | 6.4 | 5.9 | 6.2 | 6.4 | 3.8 | 4.7 | 4.5 |
| Bankruptcy | 3.8 | 3.7 | 2.8 | 3.0 | 2.5 | 1.3 | 1.8 | 1.2 |
| Proposal | 2.9 | 2.7 | 3.1 | 3.1 | 3.9 | 2.5 | 2.9 | 3.3 |
| Mauricie | ||||||||
| Insolvency | 7.0 | 7.1 | 6.8 | 6.7 | 7.3 | 4.5 | 4.1 | 4.5 |
| Bankruptcy | 4.7 | 4.7 | 4.5 | 4.2 | 4.3 | 2.4 | 2.1 | 2.0 |
| Proposal | 2.4 | 2.4 | 2.3 | 2.5 | 3.0 | 2.1 | 2.0 | 2.5 |
| Saguenay – Lac-Saint-Jean | ||||||||
| Insolvency | 6.1 | 6.7 | 6.0 | 6.2 | 6.4 | 4.1 | 3.9 | 3.8 |
| Bankruptcy | 3.6 | 4.0 | 3.6 | 3.7 | 3.5 | 2.2 | 1.9 | 1.4 |
| Proposal | 2.5 | 2.7 | 2.4 | 2.5 | 2.9 | 1.9 | 2.0 | 2.4 |
| Côte-Nord and Nord-du-Québec | ||||||||
| Insolvency | 4.6 | 6.0 | 5.3 | 5.8 | 5.7 | 4.2 | 3.6 | 4.0 |
| Bankruptcy | 2.9 | 3.5 | 3.2 | 3.3 | 3.0 | 1.9 | 1.4 | 1.0 |
| Proposal | 1.7 | 2.5 | 2.1 | 2.5 | 2.7 | 2.3 | 2.1 | 3.0 |
Source: https://www.ic.gc.ca/
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