7 Myths About Debt and Bankruptcy

7 Myths About Debt and Bankruptcy We Must Debunk

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Even today, financial problems are a delicate subject. Therefore, it’s perfectly normal to want to be discreet and try to avoid arousing the suspicions of your family or friends. However, trying to solve these problems on your own is not the answer, either. There are still several myths related to bankruptcy and debt that might get in your way and cause you more harm than good.

Here Are the Seven Most Common Myths About Bankruptcy and Debt:

1 – Everyone around me will know if I go to a bankruptcy trustee.

False. If you choose not to talk about it, nobody will know. If you declare a summary bankruptcy or file a consumer proposal, only your creditors will be notified.

2 – If I declare bankruptcy, I will never be able to get a loan again.

False. Obviously, bankruptcy is a blemish on your record, but it is still possible to rebuild your credit with healthy financial habits and the right products. With time, you will regain the confidence of banks and lending institutions.

3 – I will have to continue to pay my tax debt even if I declare bankruptcy.

False. Like the majority of debts, tax debts are cleared after release.

4 – I’ll lose everything if I declare bankruptcy.

False. There are measures that enable bankrupt individuals to keep certain essential items such as furniture, appliances, clothing, personal effects and the tools of your trade. In certain specific cases, you might even retain ownership of your home.

5 – My bankruptcy automatically results in the bankruptcy of my spouse.

False. Joint bankruptcy is a process that exists, but you can go bankrupt without your spouse or partner being affected.

6 – I must only consult a Bankruptcy Trustee as a last resort, so as to not hurt my credit rating.

False. A meeting with a Bankruptcy Trustee has no impact on your credit rating. Moreover, if you are in debt distress, it is very likely that your file is already tainted. A trustee can help you out by giving you sound advice.

7 – Bankruptcy or filing a consumer proposal is embarrassing.

False. People who benefit from the help of a bankruptcy trustee are better able to fulfill their financial responsibilities and derive a sense of pride from doing so. They can then look to the future more positively. Moreover, you should remember that you are not alone in your situation. In 2012, nearly 120,000 consumers filed an insolvency case in Canada.

Call the professional team at Groupe Serpone in Montreal and the surrounding areas to help you overcome your financial difficulties. We will prepare a realistic picture of your situation and we will try to demystify the delicate subject of over-indebtedness, in addition to offering customized solutions.