FAQ
At N. Séguin Inc, we know that the concerns and questions of people in debt are many and varied. You will find below the answers to the most frequently asked questions by our customers about their debt management issues, consumer proposals or personal bankruptcies.
A student loan is not dischargeable debt in the case of a bankruptcy, unless you completed your studies more than seven years previously. You can only stop paying your student loan if you are discharged by a bankruptcy. Although you are not required to do so, it is advisable to continue to repay your student loan during your bankruptcy period if you completed your studies less than seven years previously.
Yes, this type of debt is not dischargeable.
The payments that a debtor must pay for bankruptcy are assessed based on the monthly income of the family unit and the list produced annually by the Office of the Superintendent of Bankruptcy.
A creditor is a person, organization or company to whom another person, organization or company owes money.Understanding the terms relating to insolvency When we are in debt, solutions are at hand, but it is not always easy to see them. While we are busy dealing with our financial problems, we have less time to learn about our rights and duties regarding insolvency.Do you find that the vocabulary used is difficult to understand?Do you confuse the roles of the stakeholders and organizations?Do you feel overwhelmed by the amount of information received?Allow us to guide you in learning more about the tools to break the vicious cycle of debt. When you know more about it, you will be able to take control of your life, your business and become master of your success.N. Séguin Inc. your guide to the journey out of the debt cycle
A debtor is a person who has an obligation towards another person or an organization, including a requirement to pay an amount of money.
Insolvency is the state of a person or company who is not able to pay his debts when they become due. There is also talk of insolvency when the value of the debts of an individual or a company exceeds the value of his assets.
An asset is something belonging to a person (car, home, RRSPs, inheritance, investment, etc.) or property that the person does not have possession of, but that someone owes to them.
An unencumbered asset is a property that has already been fully paid and may be used to secure a loan, such as a home or a car.
A liability is a debt or a loan amount that a person or company has to pay.
A bankruptcy represents the state of a person or company that filed a voluntary assignment or against which a bankruptcy order was made.
A bankrupt is a person who has been declared bankrupt.
A trustee is a professional licensed by Industry Canada and regulated by the Office of the Superintendent of Bankruptcy and the Canadian Association of Insolvency and Restructuring Professionals. The licensed trustee in insolvency and restructuring advisors is responsible for administering the records governed by the Bankruptcy and Insolvency Act. Licensed by the Office of the Superintendent of Bankruptcy, the trustee ensures that the rights of creditors and debtors are respected. The trustee evaluates the debtor's financial situation, proposes solutions and accompanies him or her in the process of resolving financial problems. He or she provides information and debt consolidation or bankruptcy services.
The Superintendent of Bankruptcy is a senior official who supervises the administration of estates and matters governed by the Bankruptcy and Insolvency Act.
A credit counseling organization offers a range of services to people in financial difficulties, including individual meetings and advice to find the best strategy for repayment of their debts through a debt management program. The amount of fees and the proficiency of advisors of these organizations are not governed by law.
It is an organization established for social and educational purposes, created to promote fair, transparent and efficient debt management or financial restructuring. Besides counselling services, a non-profit credit counselling agency provides training sessions to help people make responsible decisions about their debt management.The amount of fees and the proficiency of advisors of these organizations are not governed by law.
A mortgage (hypothec in Quebec) is the right of a creditor to one or more assets of a debtor. This right guarantees the payment of a debt, so that, in case of nonpayment, the proceeds from the sale of such assets are handed over to the creditor.
Debt consolidation is the first step to take in cases where someone is having difficulty in repaying debts. This financial transaction consists in borrowing an amount of money to pay off all debts. The debtor has one monthly payment to make and keeps all his or her property. This solution has the advantage of avoiding bankruptcy. However, debtors must ensure that they have sufficient income to meet the payments of this new debt.
Collection is an action implemented by individuals or organizations to obtain the funds owed to them by their debtors. A creditor may also request the return of assets pledged as collateral.
A trustee is a person responsible for the custodianship and management of property belonging to others. Since a trustee in bankruptcy acts as a trustee, the monthly payments under a consumer proposal are managed by the trustee in bankruptcy for payment of dividends to creditors.
Trust funds are assets, especially cash and securities, entrusted to a trustee who must administer them in accordance with the instructions received, or according to the law.
Les fonds en fiducie sont des biens, particulièrement de l’argent et des titres, confiés à un fiduciaire qui doit les administrer en conformité avec les instructions reçues ou en fonction de la loi.
Un fiduciaire est une personne responsable de la garde et de la gestion d’un bien appartenant à autrui. Par exemple, le syndic agit à titre de fiduciaire. Ainsi, les paiements mensuels versés au syndic dans le cadre d’une proposition de consommateur sont gérés par le syndic jusqu’au versement des dividendes aux creditors.
A collection is an action taken by a person or organization to collect money owed by a debtor. The creditor can also demand the return of goods given as security.
Debt consolidation is the first step if you are having difficulty repaying your debts. This financial operation involves borrowing a sum of money to pay off all debts. The debtor has just one monthly payment to make, and keeps all his assets. This solution has the advantage of avoiding bankruptcy. However, the debtor must ensure that he or she has sufficient income to meet the payments on this new debt.
A mortgage is a creditor's right over one or more of a debtor's assets. This right guarantees payment of a debt so that, in the event of default, the proceeds from the sale of the asset(s) are remitted to the creditor.
It is an organization formed for social and educational purposes, created to promote a fair, transparent and efficient system of debt management or financial reorganization. In addition to advisory services, a not-for-profit credit counseling organization offers training sessions to help citizens make responsible decisions about managing their debts.
The amount of the fees, as well as the qualifications of the advisors to these organizations, are not governed by law.
A credit counseling agency offers a range of services to people in financial difficulty, including one-on-one meetings and advice on the best debt repayment strategy through a debt management program.
The amount of the fees, as well as the qualifications of the advisors to these organizations, are not governed by law.
The Superintendent of Bankruptcy is a senior official responsible for overseeing the administration of assets and affairs governed by the Bankruptcy and Insolvency Act.
This is a professional licensed by Industry Canada and regulated by the Office of the Superintendent of Bankruptcy and the Canadian Association of Insolvency and Restructuring Professionals. The Trustee in Bankruptcy and Insolvency is responsible for administering cases governed by the Bankruptcy and Insolvency Act. Authorized by the Office of the Superintendent of Bankruptcy, the trustee ensures that the rights of creditors and debtors are respected. He assesses a debtor's financial situation and, by proposing debt solutions, assists him in the process of resolving his financial problems. It provides information and services in debt consolidation and bankruptcy.
Bankruptcy is the state of a person or company who has filed a voluntary assignment or against whom a bankruptcy order has been issued.
A liability is a debt or loan that a person or company has to pay.
An unencumbered asset is an asset that has already been fully paid off and can be used as collateral for a loan, such as a home or a car.
An asset is a good or set of goods belonging to a person (car, house, RRSP, inheritance, investment, etc.) or a good that he or she does not own, but that another person owes him or her.
Insolvency is the state of being unable to pay one's debts as they fall due. Insolvency also occurs when the value of a person's or company's debts exceeds the value of its assets.
A debtor is a person who has an obligation to another person or organization, such as an obligation to pay a sum of money.
A creditor is a person, organization or company to whom another person, organization or company owes money.
In case of debt, solutions at your fingertips. It's not always easy to see them, because managing this moment requires a lot of energy. Busy putting our financial house in order, we have less time to learn about our rights and duties in the event of insolvency.
Do you find the vocabulary used difficult to understand?
Are you confusing the roles of each player, each organization?
Do you feel overwhelmed by the amount of information you receive?
Let us guide you towards a better understanding of the tools you need to get out of the vicious cycle of debt.
Because by knowing more about the subject, you'll regain control of your life, your business and become master of your success.
N. Séguin inc. is your compass for getting out of the debt cycle.
The debtor's bankruptcy payments are assessed on the basis of the family unit's monthly income and the charter produced annually by the Office of the Superintendent of Bankruptcy.
Yes, this type of debt is not releasable.
A student loan is not a debt that can be discharged in bankruptcy, unless your graduation date is more than seven years away. This means you can stop paying your student loan when you are discharged in bankruptcy.
However, although you are not obliged to do so, it is preferable to continue repaying your student loan during your bankruptcy period if your graduation date is less than seven years.
Your spouse will not be affected, unless you have joint debts or he or she has co-signed or guaranteed your debts. At that point, he or she will be responsible for repaying the debt he or she has guaranteed.
No, only seizable assets can be seized. In addition, arrangements can be made with the trustee to buy out the equity in your property. This way, your creditors are not penalized, and you don't have to dispose of your assets.
You must be insolvent and have debts of more than 1,000 $.
| Benefits | Disadvantages |
|---|---|
| Garnishments (wage garnishments and others) and collection procedures by creditors are halted. | Your credit file is affected for 6 years following your release. |
| The period for a first bankruptcy is 9 months if you have no surplus income and 21 months if you have surplus income. | You must pay a monthly amount to the trustee throughout the bankruptcy period. |
| The right of creditors to collect sums due is stopped, as is interest on your debts. | Tax refunds during the bankruptcy process are subject to seizure. |
| At the end of the process, your debts are eliminated | You cannot be a director of a company during the period of your bankruptcy. |
These solutions are possible, but temporary. They can temporarily help you get out of financial difficulty. However, they represent an additional debt with high charges and interest rates, and they don't cover all your debts. In other words, they're like a fleeting lifeline. Wouldn't you rather find a permanent solution to your debt problems?
Many mortgage brokers offer mortgage refinancing, because interest rates are low and property values are constantly rising. These mortgage brokers use the equity in your home to secure the new debt.
Before choosing this solution as a way to pay off your debts, you need to ask yourself a few questions:
- Will I be able to pay the proposed monthly instalments without difficulty?
- Will mortgage refinancing cover all my debts?
- Will I be able to make the monthly payments if interest rates rise by 1 to 2 %?
- If my income drops, will I still be able to make the monthly payments?
A trustee in bankruptcy is the professional best placed to answer your question. He or she has access to a number of government agencies and services, including Revenu Québec and the Canada Revenue Agency, and can negotiate with them to spread out your monthly payments or make an arrangement appropriate to your situation.
There are always solutions to debt. A trustee in bankruptcy will clarify your situation and find answers tailored to your needs.
A trustee in bankruptcy is the ideal professional to deal with pressure from creditors. Only he or she can put an end to creditor harassment, wage garnishment or other legal action.
The first step is to seek advice from a qualified and certified professional. He or she will accurately analyze your financial situation and guide you towards resolving your financial difficulties.
I'm using my credit card more and more.
I feel like I'm losing control of my finances and find it hard to manage my budget.
I often borrow money from friends and family between paychecks.
I need a co-signer to grant me a loan.
I've stabilized my debts, but I'm only making the minimum monthly payment.
