Bankruptcy and RBQ Licence - What's the Impact of Filing?
By Karine Dutemple
Updated on September 5, 2024
Are you a renovation contractor who has dealt with corporate bankruptcy? There’s a plethora of reasons why a renovation company can go belly up, and it’s far from being solely about lack of competence and job quality.
Bankruptcy isn’t necessarily a career-ending move. How can you bounce back as a contractor? How can you recover an RBQ licence after declaring bankruptcy and work again? Here are some must-know facts to overcome such an ordeal and launch your renovation business again.
How Does Bankruptcy Affect Your RBQ Licence?
Are you forced to close shop after declaring bankruptcy? Note that your RBQ licence—proof of your ability to work legally—will be revoked. If you’re the owner of other businesses requiring licences, these might be revoked as well. Depending on what led you to file for corporate bankruptcy, you’ll have to face consequences that may last a couple of months to a few years.
As a result, you’ll be unable to legally work as a contractor. Naturally, it’s not ideal, but, rest assured, it’s not the end of your career by any means! You’ll have to contact the RBQ to know if your licence can be reinstated, and if so, under what conditions and within what timeframe.
How to Recover from Bankruptcy and the Loss of an RBQ Licence
If your goal is to recover an RBQ licence and launch a new renovation business within a few years’ time, don’t lose hope! The system was designed to allow for second and third chances, especially if the reason your business went bankrupt wasn’t due to personal mistakes or poor actions taken on your part.
First, be patient. It’s a matter of time, organization, and humility. You may need to work as an employee for a certain period until you build back your reputation and get your finances in order. Put your contractor skills to good use instead of twiddling your thumbs awaiting bureaucratic wheels to get into motion. You could, for example, find work as the team leader for another construction or renovation company.
Afterwards, you’ll be able to plead your case with the RBQ. If your file is in order and you’re able to prove that filing for bankruptcy wasn’t a result of a severe oversight, your licence may be reinstated rather quickly.
What Lessons Can You Draw from Bankruptcy?
Statistics show just how common going bankrupt is for a lot of contractors. It’s not the end of the road! In fact, it’s absolutely possible to get back on your feet after bankruptcy and return to work, having learned very important life lessons along the way.
For example, if your company wasn’t incorporated and you had to file for personal bankruptcy on top of closing down your business, you definitely won’t want to take the same risks next time! You’ll quickly want to incorporate your next business venture soon after opening to protect yourself. That way, the risk won’t be as great and you’ll be able to bounce back faster if you’re ever faced with financial troubles once again.
You might also want to transition into work that doesn’t require one to hold an RBQ licence.
How to Incorporate a Business
Ready to move forward and incorporate your business? Lexstart is there to guide you along! This company provides affordable legal incorporation kits (check out their website for current pricing) and expert guidance to make the process as easy as possible for yourself and your renovation company.
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