🔒 Can Creditors Take Your QPP Money If You Go Bankrupt or After You Retire?

Your Québec Pension Plan (QPP) shows up on every pay stub — but what happens to it if life goes sideways?
What if you go bankrupt or face serious debt — can creditors take that money?

Here’s the full answer 👇

🧾 What Is QPP and Why It’s Deducted from Your Pay

The Québec Pension Plan (QPP) is Québec’s version of the Canada Pension Plan (CPP).

If you work in Québec, a small portion of every paycheque (and an equal employer match) goes to QPP.
That money builds credits toward your:

• Retirement pension
• Disability benefits
• Survivor and death benefits

It’s not a private savings account — it’s a social security program, run by Retraite Québec, and protected by law.

💡 The Short Answer: Creditors Can’t Touch Your QPP

Under Québec law (Act respecting the Québec Pension Plan, RLRQ c. R-9, s. 104),
your QPP benefits are exempt from seizure.

That means:

• Credit card companies
• Banks
• Collection agencies
• Even a bankruptcy trustee

👉 None of them can legally access your QPP contributions or benefits.

Your QPP is considered a public right, not personal property,
so it’s excluded from your assets during bankruptcy or insolvency proceedings.

🛡️ Part 1: While Your QPP Is Still with Retraite Québec

As long as your pension is still held by Retraite Québec (before it’s paid out),
it’s completely protected from any creditor.

This protection covers:

• All accumulated QPP credits
• Your retirement, disability, and survivor benefits
• Any death benefits payable to your family

Even if you owe $200,000 and file for bankruptcy,
your QPP remains 100% safe.

The only exception is for court-ordered family support (spousal or child support).
Otherwise, creditors can’t touch it.

💸 Part 2: After You Start Receiving QPP Payments

Once your monthly QPP pension is deposited into your bank account,
it’s no longer technically “inside” Retraite Québec — it becomes your personal income.

At this point:

• The money can still be traced as pension income and retain partial protection.
• But if it’s mixed with other funds (salary, e-transfers, savings),
  it loses some of its legal shield.

✅ To stay protected:

• Use a separate bank account for QPP deposits only.
• Keep your Retraite Québec statements showing the source of funds.
• Don’t mix QPP deposits with other income if you’re facing legal or credit issues.

That way, if a creditor tries to garnish your account, you can prove the money is QPP-derived and therefore exempt.

⚖️ Legal Exceptions: When QPP Can Be Deduced or Garnished

Even though QPP is protected, there are a few specific exceptions where deductions can happen:

Situation	Can They Deduct QPP?	Who Can Do It
Child or spousal support	✅ Yes	Court or government enforcement agency
QPP overpayment	✅ Yes	Retraite Québec (they can recover overpaid benefits)
Tax debts	⚠️ Possible	CRA/Revenu Québec may garnish under special orders
Normal creditors (banks, credit cards, loans)	❌ No	Not allowed by law

📘 Real-Life Example

Maria, age 65, receives $1,300 per month from QPP.
She owes $60,000 in personal loans and declares bankruptcy.

Here’s what happens:

• The trustee cannot include her QPP in the bankruptcy estate.
• Retraite Québec keeps paying her pension directly.
• The money stays protected as long as it’s identifiable as QPP income.

If Maria mixes it with other income and a creditor later gets a bank garnishment order,
she may need to prove that portion is QPP-only to keep it safe.

💬 Key Takeaways

✅ Your QPP is 100% protected while held by Retraite Québec.
⚠️ Once deposited into your bank, keep it separate to maintain protection.
❌ Creditors cannot seize or garnish QPP for regular debts or bankruptcy.
👨‍👩‍⚖️ Only support orders or government recoveries can reduce QPP payments.
💡 Even if you leave Canada, your QPP remains yours forever — not claimable by any creditor.

🧠 Unity Financial Services Tip

Your pension is your safety net — protect it wisely.

If you’re facing debt, collection calls, or bankruptcy,
your QPP, CPP, and locked-in pensions are already protected by law — but how you manage them matters.

At Unity Financial Services, we guide clients through:

• Reviewing payroll deductions and QPP entitlements
• Protecting pensions and RRSPs during insolvency
• Coordinating retirement income safely
• Building a fresh financial start after debt

📞 438-701-3770
🌐 unityfs.ca