Tenant Rights When Landlord Declares Bankruptcy in Quebec

If your landlord in Quebec declares bankruptcy, it can be confusing and stressful for tenants. You still have rights under your lease and provincial law, and important protections come from both the Civil Code of Quebec and federal bankruptcy rules. This guide explains what typically happens to your lease, whether you must keep paying rent and who collects it, how repairs and essential services are handled, and what to do about notices or eviction threats. It also lists key forms and official contacts, practical steps to protect your tenancy, and when to seek help from the Tribunal administratif du logement or a legal clinic. Keep clear records and act promptly to preserve your rights.

What happens when a landlord declares bankruptcy in Quebec?

When a landlord files for bankruptcy under federal law, a trustee is appointed to manage the bankrupt estate. Leases on residential units are treated as contracts that may be inspected by the trustee; however, tenants keep rights under the Civil Code of Quebec and may rely on the Tribunal administratif du logement for disputes.^[1] The trustee can either continue to operate the rental business, assign the lease to a buyer, or in some cases disclaim onerous contracts under the Bankruptcy and Insolvency Act.^[2]

Who collects rent and how should tenants pay?

Until you are told otherwise in writing, keep paying rent on time and keep receipts. If the trustee takes over, you may be instructed to pay rent to the trustee or to a new property manager; follow written instructions and always get a dated receipt. If you are unsure whether a notice to pay someone new is legitimate, contact the Tribunal administratif du logement for guidance before stopping payments.^[1]

• Keep paying rent to the usual account or person until you receive an official written instruction to do otherwise.
• Keep copies of rent receipts, bank transfers, emails and any written notices about payment changes.
• Ask for any new payment instructions in writing and verify the identity of the trustee or manager before making payments.
• Contact the trustee or the Tribunal administratif du logement if you receive contradictory directions about rent collection.

Repairs, services and habitability

Your right to a habitable rental unit does not disappear if the landlord is bankrupt. Essential repairs, heating, hot water and plumbing remain the landlord's responsibility unless the trustee provides clear alternative arrangements. If repairs are delayed, document the issue with photos, written requests and repair logs and consider asking the Tribunal administratif du logement for an order to compel repairs.

Notices, eviction and hearings

A trustee may seek to end some contracts, and in rare cases this can lead to an application affecting your lease. However, any eviction or termination must follow Quebec procedure and generally requires a hearing at the Tribunal administratif du logement.^[1] If you receive an eviction notice or a notice to vacate, do not ignore it — check timelines, gather documents and get legal advice if possible. For general guidance on your rental agreement rights and obligations, see What Tenants Need to Know After Signing the Rental Agreement.

Practical steps tenants should take now

Acting quickly and keeping records protects your rights. Below are immediate steps to consider and examples of how to apply them in real situations.

• Read your lease and make a copy of all pages, especially clauses about assignment, termination and contact details.
• Continue paying rent and get receipts; if you paid by e-transfer or cheque, keep screenshots or bank records as proof.
• Ask the trustee for written proof of authority before paying anyone new and confirm any changes with the Tribunal if unsure.
• Report and log repair requests in writing and follow up in case maintenance is disrupted while the trustee reorganizes management.
• If you believe your lease has been wrongly terminated, prepare to file an application with the Tribunal administratif du logement and gather evidence: lease, receipts, photos and communications.

Official forms you may need and when to use them

Below are common forms tenants in Quebec may encounter and how to use them in plain language.

• Application to the Tribunal administratif du logement (Demande): Use this to start a claim about eviction, unpaid rent or repairs. Example: you submit the Application to ask the Tribunal to order essential repairs after the trustee fails to respond.
• Request for an urgent remedy: Use when a health or safety issue (no heat, no water) needs fast Tribunal intervention. Example: if heat is cut off and the trustee does not arrange repairs, file this request for a faster hearing.
• Proof of claim forms in bankruptcy proceedings: If you have a claim (for example, unpaid repairs paid out of pocket), you may be asked to submit a proof of claim to the trustee under the Bankruptcy and Insolvency Act. Keep copies of invoices and receipts as evidence.^[2]

Find official Tribunal forms and filing instructions on the Tribunal administratif du logement website and consult federal bankruptcy guidance for claim procedures.^[1][2]

How-To

1. Read your lease and any notices and keep copies for your file.
2. Continue paying rent and get dated receipts or written confirmation of payment.
3. Contact the trustee or property manager in writing to confirm who will collect rent and who handles repairs.
4. If repairs or rights are threatened, file an application with the Tribunal administratif du logement with supporting documents.
5. Seek legal advice or contact legal aid and community legal clinics if you need help preparing forms or attending hearings.

FAQ

Do I have to keep paying rent if my landlord is bankrupt?

Yes. Keep paying rent and keep records; only stop or change payment after you receive clear written instructions from the trustee or a court order.

Can I be evicted because the landlord declared bankruptcy?

Not automatically. Any eviction or termination must follow Quebec law and generally requires a Tribunal hearing; get advice and respond to notices quickly.

Who handles repairs if the landlord is absent or unreachable?

The trustee or a new property manager is usually responsible; if essential services are missing, document the issue and consider asking the Tribunal to order repairs.

What if I paid a security deposit—can I get it back?

If you are owed a deposit or interest, document the payment and consider filing a claim with the trustee and asking the Tribunal for help; see guidance on deposit returns in our resource on deposits.

Help and Support / Resources

• Tribunal administratif du logement (official site)
• Government of Quebec — housing and rental information

1. [1] Tribunal administratif du logement (official site)
2. [2] Bankruptcy and Insolvency Act (Justice Canada)
3. [3] Government of Canada — Bankruptcy and insolvency information

If you need to find a new rental while you resolve tenancy issues, Find rental homes across Canada on Houseme. For rules about getting your deposit back after a move, see How to Get Your Security Deposit Back with Interest When Moving Out.