Bankruptcy, Insolvency and Restructuring Law is the branch of law that brings together all the legislative, jurisprudential and administrative standards designed to alleviate the debt burden of honest but unfortunate debtors.
Eventually, bankrupts are generally discharged from the obligation to repay the debts they owed at the time of bankruptcy, unless they have opted for a proposal, a procedure under which the debtor offers his creditors to repay a percentage of his debt over a specified period, to reschedule the repayment of his debt over a longer period, or to combine these two options. Creditors must vote to accept or reject the proposal.
There are two types of proposal:
- the consumer proposal for individuals with debts under $250,000 (excluding mortgage);
- the Section I proposal for businesses and individuals (regardless of the amount of their debts).
Once the terms of the proposal have been met, the debtor is released by law from the obligation to repay the debts covered by the proposal.
It goes without saying that knowledge of these rules is of the utmost importance, not only when developing strategies to preserve the chances of success of a consumer proposal or corporate restructuring, but also, if not more so, when a disagreement arises between an individual debtor and his creditors, or a dispute arises following the filing of an application under the Companies' Creditors Arrangement Act.
It is therefore particularly important to be well advised in these matters, and to be well represented, to increase the likelihood that a company in financial difficulty will be able to preserve jobs and its value by allowing it to continue operating.
Thanks to their diversified professional experience acquired both locally and nationally, the group of bankruptcy, insolvency and restructuring jurists affiliated with PSP Legal can not only advise you and help you implement strategies to preserve your personal assets and restructure your business, if necessary, for the benefit of your loved ones and employees, but can also help you assert your rights before the courts, anywhere in Quebec.
We are a group of independent lawyers, notaries and corporate services firms whose primary objective is to promote access to justice and legal knowledge by offering quality legal tools, advice and services online, over the phone and in person, at reasonable cost.
With a human and personalized approach, the jurists affiliated with PSP Legal and the tools they offer support you and help reassure you in the face of what may seem like an ordeal. With the group of bankruptcy, insolvency and restructuring jurists affiliated with PSP Legal, you're no longer alone in dealing with the complexities of the situations you face.
The group of bankruptcy, insolvency and restructuring jurists affiliated with PSP Legal...because you deserve expert advice!
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