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Myths about Debt
Even today, financial problems remain a sensitive subject. So it's perfectly normal to want to keep a low profile and avoid arousing suspicion among family and friends. However, the best solution is not to try to solve your problems alone. Many myths about debt are still circulating, and this could do you more harm than good. At Groupe Serpone, we offer all our customers practical, informative advice on how to manage their debts more effectively.
The 7 most common misconceptions about bankruptcy and debt
1 - Everyone around me will know if I go see a trustee in bankruptcy.
False. If you decide not to talk about it, no one will know. If you declare summary bankruptcy or file a consumer proposal, only your creditors will be notified.
2 - If I declare bankruptcy, I'll never be able to make another loan.
False. Obviously, bankruptcy will taint your record, but you can rebuild your credit with good financial habits and the right products. Over time, banks and lending institutions will regain their confidence in you.
3 - I'll still have to pay my tax debt even if I declare bankruptcy.
False. Like most debts, tax debts are written off after the tax return is filed.
4 - I'll lose everything if I declare bankruptcy.
False. There are measures that allow bankrupts to keep certain essential assets, such as furniture, appliances, clothing, personal effects and work tools. In specific cases, you may even be able to retain ownership of your home.
5 - My bankruptcy automatically entails my spouse's bankruptcy
False. The joint bankruptcy process exists, but you can be bankrupt without affecting your spouse or partner.
6 - I should consult a trustee in bankruptcy only as a last resort to avoid affecting my credit rating.
A meeting with a bankruptcy trustee will have no impact on your credit rating. What's more, if you're already over-indebted, it's highly likely that your file has already been compromised.
7 - Filing for bankruptcy or a consumer proposal is embarrassing.
False. People who benefit from the help of a bankruptcy trustee are better able to meet their financial obligations, and therefore feel a sense of pride. This in turn enables them to look to the future with greater optimism. On the other hand, you should bear in mind that you are not isolated in this situation. In 2012, nearly 120,000 consumers filed for insolvency in Canada.
Groupe Serpone's team of professionals in Montreal and surrounding areas will help you overcome your debt problems and get you the financial advice you need. We'll give you a realistic reading of your situation, shed light on the delicate subject of financial debt and offer you customized solutions.
For more information on debt myths, and a free initial consultation, contact Groupe Serpone today!
