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Regie des Rentes & Bankruptcy (faillite)

Hi my name is Kathy I have not worked for two years due to health problems I have been receiving 80% of my salary from my employer ( salary insurance ) I HAVE BEEN DECLARED BY THE QUEBEC GOVERNEMENT as total disabled which I am and I am receiving 850.00 a month from the regie des rentes of Quebec I am also receiving salary insurance form my employer at 80% of my salary minus the 850.00 a month that I receive from the regie des rentes of Quebec disability total disability I owe approx. 28,000 of debt if I do not pay my debt can the creditors seize my salary which is insurance salary and my disability pension from Quebec. thank you I was wondering if I should do consumer proposal or bankruptcy. A lot of my salary goes to paying people to help me ie someone to cook and clean for me and other medical expenses thanks you I need your advice Kathy

Posted from: Quebec

One Response to “Regie des Rentes & Bankruptcy (faillite)”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

Generally speaking insurance companies which cover lost wages from an employer do not have the privilege of exemptions under federal or provincial exemptions, If the creditors were to initiate legal action for nonpayment of debt they could use the judgment to get a garnishment order and serve that garnishment order on the insurance company. They could take the maximum prescribed by law in your jurisdiction as if it were wages.

Federal or provincial disability programs are generally not subject to seizure by creditors. This does not prevent the creditor with a judgment from seizing your bank accounts or other assets not exempt from seizure. If you are unable to pay your debts or make suitable arrangements with the creditors you may wish to resort to a statutory remedy such as a consumer proposal or an assignment in bankruptcy.

It is difficult to properly assess your situation in that we do not know what your net monthly income is, nor do we know the value of your assets or whether any of those assets would be exempt from seizure. In filing a consumer proposal your assets do not vets in the trustee in bankruptcy and the terms of the proposal could reflect your ability to pay. In a bankruptcy your assets, if not exempt from seizure, would be assets of the bankruptcy estate and sold by the trustee for the general benefit of your unsecured creditors. In a bankruptcy Directive 11R of the Bankruptcy and Insolvency Act will dictate how much money you pay to the estate from your income.

Whether an assignment in bankruptcy or a consumer proposal is in your best interest will to a large degree depend upon the details of your situation. You may wish to have a trustee in bankruptcy assess your situation based on all of the details so that you can make a decision that is in your best interest.