Québec One-time Amount to Mitigate the Increase in the Cost of Living

The Office of the Superintendent of Bankruptcy (OSB) has published a position paper that provides clarity on the treatment of the Québec one-time amount to mitigate the increase in the cost of living under the Bankruptcy and Insolvency Act (BIA).

The OSB’s position is that the one-time amount to mitigate the increase in the cost of living, pursuant to paragraph 67(1)(b) of the BIA, is not property of the bankrupt that is divisible among creditors. However, pursuant to the Taxation Act of Quebec, the one-time amount to mitigate the increase in the cost of living is deemed to be an amount paid on account of the individual’s tax payable for 2021 and the funds paid retain their character as income. Therefore, while the bankrupt is entitled to retain the one-time amount to mitigate the increase in the cost of living, it shall be accounted for by the Licensed Insolvency Trustee in the surplus income calculation under section 68 of the BIA.

For details, please read the position paper on the OSB’s website:

Treatment of the Quebec One-Time Amount to Mitigate the Increase in the Cost of Living under the Bankruptcy and Insolvency Act