Debt Relief in Quebec: Consumer Proposals, Bankruptcy & Your Rights (2026)

Quebec’s unique civil law system and bilingual requirements make debt collection different from other Canadian provinces. With a 3-year prescription period and 70% wage protection, Quebec residents have strong consumer protections alongside federal debt relief options like consumer proposals and bankruptcy that work identically across Canada.

Your Debt Collection Rights in Quebec

Quebec is the only Canadian province that uses civil law derived from the French legal tradition rather than British common law. The Civil Code of Quebec governs contracts, obligations, and debt collection differently than other provinces. Understanding these differences is crucial when dealing with creditors.

Under Article 2925 of the Civil Code, creditors have 3 years to commence legal action to collect most debts. This is called a prescription period rather than a limitation period. The clock starts from the date the payment obligation became due, the date of your last payment, or the date of your last acknowledgment, whichever is latest.

After 3 years without a lawsuit being filed, the debt is prescribed and creditors cannot enforce it through the courts. Like other provinces, the debt technically still exists and collectors can still call, but they cannot sue you or obtain a judgment to garnish wages or seize assets. Making any payment or acknowledging the debt in writing or verbally restarts the 3-year prescription period.

Quebec consumers also have language rights under the Charter of the French Language. You have the right to be served in French throughout the debt collection process, and all contracts must be available in French. Collection agencies operating in Quebec must be able to communicate in French.

How Does Quebec’s Civil Law Affect Debt Collection?

Civil law operates on different principles than common law. In Quebec, the Civil Code provides comprehensive rules for contracts and obligations, while common law provinces rely more on judge-made precedent. For debt collection, this means prescription periods are calculated differently and acknowledging a debt has different legal effects.

In common law provinces, you can acknowledge a debt informally without necessarily restarting the limitation period. In Quebec civil law, acknowledgment is interpreted more broadly and even verbal statements can restart the prescription period. This makes it even more important to avoid discussing old debts with collectors unless you intend to pay.

The Office de la protection du consommateur regulates collection agencies and enforces consumer protection rules. This provincial agency is more active in debt collection regulation than consumer protection bodies in some other provinces. Collectors must follow strict rules about contact frequency, disclosure requirements, and prohibited practices.

The 3-Year Prescription Period in Quebec

The 3-year prescription period applies to most unsecured debts including credit cards, personal loans, lines of credit, and payday loans. However, some debts have different rules:

Court judgments are particularly important in Quebec because they can be renewed indefinitely. If a creditor obtains a judgment and takes proper steps to renew it every 10 years, the debt never prescribes. This makes it even more critical to respond to lawsuits rather than ignoring them and hoping the judgment expires.

Quebec residents also need to consider both federal and provincial tax debts. While most provinces only deal with the Canada Revenue Agency, Quebec residents can owe Revenu Québec for provincial tax debt. Both agencies have 10-year collection periods for tax arrears, and both debts can be included in consumer proposals.

Wage Garnishment Limits in Quebec

If a creditor obtains a court judgment and applies for wage seizure, Section 698 of the Code of Civil Procedure protects 70% of wages from garnishment. Quebec uses a formula-based approach that considers your family situation and income level, providing additional protection for low-income workers beyond the base 70% exemption.

A worker earning $4,000 per month in Quebec could lose up to $1,200 to wage garnishment, compared to $800 in Ontario or $2,000 in Alberta. The formula-based calculation means low-income earners with dependents may have more than 70% protected, while higher earners may be subject to the full 30% garnishment.

Use the wage garnishment calculator to estimate your exposure and verify whether any existing garnishment exceeds legal limits. Keep in mind that support payments like child support or alimony have separate rules and are not subject to the same 70% exemption.

Rules Collectors Must Follow in Quebec

The Office de la protection du consommateur enforces consumer protection rules for debt collection in Quebec. Collection agencies must be licensed and follow strict rules about how they contact consumers and what they can say.

Prohibited practices include using threatening, abusive, or intimidating language; misrepresenting the amount owed or their authority to collect; claiming they will take actions they cannot legally take; and applying excessive pressure or harassment. Collectors cannot contact you so frequently that it amounts to harassment, though Quebec does not specify an exact number of contacts permitted per week like Ontario does.

Collectors cannot discuss your debt with third parties except to obtain your contact information. This means they cannot tell your employer, family members, neighbors, or friends about the debt. They can only contact your employer to verify employment or to execute a court-ordered garnishment once obtained.

Under the Charter of the French Language, you have the right to demand service in French at any stage of the debt collection process. Contracts, letters, and all communications must be available in French. If a collector cannot communicate effectively in French, the agency must provide someone who can.

You have the right to request that all communication be in writing only. Send a registered letter to the collection agency stating this request and providing an address where they can send correspondence. Once they receive this letter, phone calls must stop.

Options for Dealing With Debt in Quebec

When debt becomes overwhelming, Quebec residents have the same federal debt relief options as other Canadians. Consumer proposals and bankruptcy are administered by Licensed Insolvency Trustees under the Bankruptcy and Insolvency Act. These programs work identically in Quebec as in other provinces despite Quebec’s different civil law system.

Both consumer proposals and bankruptcy trigger an automatic stay of proceedings that immediately stops all collection activity including calls, letters, lawsuits, and wage garnishments. This federal protection applies regardless of provincial law, giving Quebec residents powerful tools to stop aggressive collectors and eliminate debt legally.

Other options include negotiating directly with creditors for reduced settlements, consolidating debts through a loan or line of credit if you qualify, or working with non-profit credit counselling agencies to create a debt management plan. Each approach has different costs, timeframes, and credit impacts.

How Consumer Proposals Work in Quebec

Consumer proposals offer Quebec residents significant debt reduction while keeping all assets. You can reduce your total unsecured debt by 60 to 80 percent typically, make fixed monthly payments for up to 5 years, and avoid the stigma and credit impact of bankruptcy. Many Quebec Licensed Insolvency Trustees are fully bilingual and can administer proposals in French.

Average consumer proposal statistics for Quebec show total debt around $45,000, proposal payments of 30 to 35 cents per dollar owed, and completion rates similar to other provinces. These numbers demonstrate that proposals provide substantial debt relief while remaining affordable for most households.

The consumer proposal process begins with a free consultation where a Licensed Insolvency Trustee reviews your income, expenses, assets, and debts. The trustee calculates what creditors would receive if you declared bankruptcy, and your proposal must offer more than this amount. Once you agree on terms, the trustee files your proposal and you immediately receive protection from creditors through the stay of proceedings.

Creditors have 45 days to vote on your proposal. If creditors holding the majority of the dollar value vote to accept, the proposal binds all unsecured creditors. You make your monthly payments for the agreed term, and once complete, you receive a Certificate of Full Performance and your remaining unsecured debt is legally eliminated.

Consumer proposals are particularly effective in Quebec for residents dealing with dual tax debt from both the Canada Revenue Agency and Revenu Québec. Both federal and provincial tax debts can be included in proposals. Your bilingual trustee can communicate with both agencies and negotiate a single monthly payment that resolves both obligations.

Use the consumer proposal calculator to estimate what you might pay based on your income and assets. Consumer proposals result in an R7 rating on your credit report for 3 years after completion or 6 years from filing, whichever comes first.

Personal Bankruptcy in Quebec

Bankruptcy provides immediate debt relief for Quebec residents with little income or assets. While the credit impact is more severe than a consumer proposal, bankruptcy eliminates most unsecured debts within 9 to 21 months depending on your income level. First-time bankruptcy typically lasts 9 months if you have no surplus income.

In bankruptcy, a Licensed Insolvency Trustee takes control of your non-exempt assets and distributes proceeds to creditors. Quebec bankruptcy exemptions under provincial law protect necessary items including basic household furnishings, clothing, one vehicle up to a certain value, RRSPs except contributions in the last 12 months, and tools of the trade.

Most unsecured debts are eliminated including credit cards, personal loans, lines of credit, payday loans, tax debt to both CRA and Revenu Québec, and medical bills. Student loans are only discharged if you’ve been out of school for at least 7 years. Secured debts, support payments, and court fines are not eliminated in bankruptcy.

Bankruptcy results in an R9 rating on your credit report which remains for 6 years after discharge for first-time bankruptcy. This is more severe than the R7 rating from a consumer proposal. Compare both options using the debt relief comparison tool to determine which approach makes sense for your financial situation.

What Makes Quebec Debt Collection Different?

Beyond the civil law system and language rights, Quebec has unique characteristics that affect debt collection and relief options. The dual tax system means residents must deal with both federal CRA debt and provincial Revenu Québec debt, which can complicate debt situations but both can be resolved through federal insolvency proceedings.

The Office de la protection du consommateur takes a more active role in regulating collection agencies than consumer protection bodies in some other provinces. Quebec consumers can file complaints in French and expect bilingual service throughout the complaint process. The OPC investigates violations and can impose penalties on agencies that break the rules.

Consumer protection in Quebec extends beyond debt collection to all consumer transactions through the Consumer Protection Act. This comprehensive framework provides strong rights for Quebec consumers when dealing with merchants, service providers, and financial institutions.

Despite these provincial differences, federal debt relief options work identically in Quebec. The Bankruptcy and Insolvency Act is federal legislation that applies uniformly across Canada. When you file a consumer proposal or bankruptcy in Quebec, you receive the same legal protections, debt reduction, and credit impact as residents of any other province.

Licensed Insolvency Trustees in Quebec

Licensed Insolvency Trustees are federally regulated professionals who administer consumer proposals and bankruptcies across Canada. In Montreal, Quebec City, and throughout the province, many trustees are fully bilingual and provide services in French and English.

Quebec trustees have expertise handling both CRA and Revenu Québec tax debt, which is essential for residents dealing with provincial and federal tax arrears. They understand how Quebec’s civil law system interacts with federal insolvency law, and can explain your options clearly in your preferred language.

Most trustees offer free initial consultations by phone, video, or in person. During this consultation, the trustee will review your financial situation and calculate what you would pay in a consumer proposal versus bankruptcy. They will also explain how each option affects your credit, what you can keep, and how long the process takes.

Use the Office of the Superintendent of Bankruptcy directory to find a Licensed Insolvency Trustee near you. Look for trustees with bilingual staff if you prefer service in French, and ask about their experience with Quebec-specific issues like Revenu Québec debt and civil law questions.

Filing a Complaint Against a Collector in Quebec

If a collection agency violates Quebec’s consumer protection rules, file a complaint with the Office de la protection du consommateur. The OPC investigates complaints, enforces collection agency regulations, and can impose penalties on agencies that break the rules.

Document all interactions with collectors including dates, times, names, and the content of communications. Save voicemails, letters, emails, and text messages as evidence. Note any violations such as calls at unreasonable hours, threats, disclosure to third parties, or refusal to provide French-language service.

File a complaint online at opc.gouv.qc.ca/en/consumer/problem/complaint or call 1-888-672-2556. The OPC provides service in both French and English. While filing a complaint does not eliminate the debt, it holds agencies accountable and supports enforcement action against collectors who violate Quebec law.

Next Steps for Quebec Residents: How to Get Debt Help

Quebec’s civil law system and bilingual requirements make debt collection unique, but consumer proposals and bankruptcy are federally administered and work the same way across Canada. If you’re dealing with debt in Quebec, a bilingual Licensed Insolvency Trustee can help you navigate both your rights under Quebec law and your debt relief options under federal law.

Calculate your potential consumer proposal payment to see what you might pay monthly. Learn about the statute of limitations on debt in Canada including Quebec’s 3-year prescription period. Review how to stop wage garnishment if you’re facing a Section 698 seizure order. Compare all debt relief options to find the best path forward.

Quebec’s strong consumer protections and access to federal debt relief programs give you multiple tools to resolve debt legally while protecting your rights and rebuilding your financial future.