What is the impact of bankruptcy on the partition of family patrimony rights?

In Québec, bankruptcy does not extinguish the right to partition of the family patrimony, but it affects how that right can be exercised. Under C.c.Q. arts. 416–418 and the Bankruptcy and Insolvency Act (ss. 67–71), once a spouse declares bankruptcy, all of their property vests in the trustee, who administers it for creditors. The non-bankrupt spouse retains a claim for partition, but it can only be enforced against the net value remaining after bankruptcy proceedings. The right is thus postponed until the trustee completes administration, and may yield little or no recovery depending on the estate’s solvency.

C.c.Q. art. 416–418, 423; Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3), ss. 67–71

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