Are you living in Quebec and worried about your debts? You are not the only one. According to the latest MNP Consumer Debt Index, 54% of Quebec residents “are still concerned with their ability to repay their debts, even if interest rates decline.” Not ideal. I know. But hope is not lost. There are plenty of debt relief options in Quebec.
Debt Relief Programs for Quebec
Advice for debt relief is available for residents across the province. Areas such as Montreal, Quebec City, and Trois-Rivières will have more localized support. This means more in-person counseling options.
1. ACEF (Associations coopératives d’économie familiale)
ACEF is a network of non-profit organizations in Quebec. The organization offers financial counseling, budget management support, and debt management advice, which helps those in financial difficulty understand their options. ACEF also provides guidance for negotiating with creditors. They MAY also be able to help you lower the balance of your outstanding debt. Like I said, there is hope!
Services: Financial counseling, debt management programs, budget planning, and credit negotiation
Eligibility: Any Quebec resident battling debt
Benefits: Free services, personalized advice, and guidance on how to manage financial challenges
More information: Contact ACEF for more details
2. Credit Counselling Society – Quebec
The Credit Counselling Society offers Quebec residents credit assistance. Their counselors assist with budgeting, debt consolidation, and financial education. They will also work with your creditors on your behalf to create a manageable debt repayment plan.
Services: Credit counseling, debt consolidation programs, budgeting assistance, and financial literacy
Eligibility: Open to Quebec residents dealing with unsecured debt
Benefits: Free initial consultation (yes, free!). They also offer customized debt repayment solutions and ongoing financial education.
More information: Visit Credit Counselling Society Quebec
3. Debt consolidation loan
A debt consolidation loan allows you to combine multiple debts into one with a lower interest rate. This means lower payments! By consolidating your debts, you make a single monthly payment to the lender rather than multiple payments to different creditors. Many financial institutions in Quebec offer debt consolidation loans.
Eligibility: Quebec residents with a stable income and solid credit are typically eligible for debt consolidation loans.
Benefits: Simplified debt management, lower interest rates and streamlined payments
More information: Contact your local bank or credit union.
4. Syndics de Faillite (Licensed Insolvency Trustees) in Quebec
Quebec residents can work with Licensed Insolvency Trustees (LITs) or Syndics de Faillite in French to explore insolvency solutions. Options may include bankruptcy or a consumer proposal. A LIT or Syndics de Faillite can help administer insolvency proceedings. These professionals also offer guidance on your situation and provide specific advice.
Eligibility: Quebec residents who are unable to pay their unsecured debts
Benefits: Personalized advice on how to protect your assets while eliminating debt
More information: Contact a professional in Quebec for tailored guidance. Click here to find a Syndics de Faillite or LIT in Quebec: https://www.ic.gc.ca/app/scr/tds/web/?lang=eng
BDO Debt Solutions
BDO Debt Solutions offers debt relief options and financial counseling. They also aid individuals in managing or eliminating debt through consumer proposals or bankruptcy.
- Address: 17 offices in Quebec (see https://debtsolutions.bdo.ca/locations/ for details)
MNP Debt
MNP offers debt relief for individuals throughout Quebec and across Canada. Services include debt consolidation, financial counseling, and debt restructuring. They also help eliminate debt through consumer proposals or bankruptcy.
- Address: 45 offices throughout the province (visit https://mnpdebt.ca/en/offices?filter=offices®ions=Quebec)
5. Consumer Proposal
A consumer proposal is a contract between you and your creditors. It is a legally binding agreement. A Licensed Insolvency Trustee (LIT) or Syndics de Faillite will administer the process. They will allow you to repay a portion of your debt over a period of up to five years. Often, repayment is at a reduced amount. That’s right. It IS possible to repay a lower amount!
A professional will negotiate with creditors on your behalf. Once the proposal is accepted, you will make monthly payments to the LIT or Syndics de Faillite. They will then distribute the funds to your creditors.
Eligibility: A consumer proposal is for Quebec residents with debts under $250,000. You must also have a stable income and trouble paying your debts in full.
Benefits: Protect your assets and reduce overall debt. Perhaps most importantly, it helps you avoid bankruptcy.
More information: Contact a Syndics de Faillite or LIT in Quebec to discuss your financial situation.
6. Bankruptcy
Bankruptcy in Quebec is a legal process that helps individuals eliminate most of their debts. It is only for those who are insolvent and unable to repay their debts. It is a LAST-RESORT option only.
A Licensed Insolvency Trustee (LIT) or Syndics de Faillite will assess your financial situation. They can guide you through bankruptcy. The process involves surrendering certain assets and making regular payments over a set period. Once bankruptcy is complete, most of your unsecured debts are discharged. You will need to start again financially, though.
Eligibility: Bankruptcy can be suitable for Quebec residents who are insolvent and unable to repay the amount owed. There is no minimum or maximum debt limit.
Benefits: Bankruptcy eliminates most unsecured debts. It also offers immediate relief from creditors. AND provides a fresh financial start.
More information: Speak directly with a Syndics de Faillite or LIT in Quebec for specific advice.
Lauren has over 13 years of experience in wealth management and financial planning. She is a CFA charterholder and holds a Bachelor's degree in Finance. Lauren has worked with several asset management firms, offering wealth advisory and portfolio management services to high-net-worth clients.
