Frequently asked questions

At N. Séguin inc. we know that the concerns and questions of people in debt are many and varied. Below, you'll find answers to the questions most frequently asked by our customers about debt management, consumer proposals and personal bankruptcy.

Personal bankruptcy

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.

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 $.

Advantages :
  • Garnishments (wage garnishments and others) and collection procedures by creditors are halted.
  • The period for a first bankruptcy is 9 months if you have no surplus income and 21 months if you have surplus income.
  • The right of creditors to collect sums due is stopped, as is interest on your debts.
  • At the end of the process, your debts are eliminated
Disadvantages :

 

  • Your credit file is affected for 6 years following your release.

  • You must pay a monthly amount to the trustee throughout the bankruptcy period.

  • Tax refunds during the bankruptcy process are subject to seizure.
  • You cannot be a director of a company during the period of your bankruptcy.

Debt management

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.

Useful definitions

Trust funds are assets, particularly money and securities, entrusted to a trustee who must administer them in accordance with instructions received or as required by law.

A trustee is a person responsible for the custody and management of property belonging to another. For example, the trustee acts as a fiduciary. Monthly payments to the trustee under a consumer proposal are managed by the trustee until dividends are paid to 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 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.

A bankrupt is a person declared bankrupt.

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.

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.

 

A concrete solution

Don't let debt suffocate you.

Choose financial freedom.

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