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Myths About Debt
Even today, financial problems remain a sensitive topic. It is therefore completely normal to want to remain discreet and avoid raising suspicions among your family or friends. However, the best solution is not to try to solve your problems alone. Many myths about debt still circulate, and these could cause you more harm than good. At Groupe Serpone, we offer all our clients concrete and informative advice for better debt management.
The 7 Most Common Misconceptions About Bankruptcy and Debt
1 – Everyone I know will find out if I see a bankruptcy trustee.
False. If you choose not to disclose it, no one will know. If you file for summary bankruptcy or make a consumer proposal, only your creditors will be notified.
2 – If I declare bankruptcy, I will never be able to obtain a loan again.
False. While bankruptcy will undoubtedly affect your credit record, you have the opportunity to rebuild your credit through sound financial habits and appropriate financial products. Over time, banks and lending institutions will regain their trust in you.
3 – I will have to continue paying my tax debt even if I declare bankruptcy.
False. Like most debts, tax debts are discharged after filing.
4 – I will lose everything if I declare bankruptcy.
False. Measures are in place to allow individuals filing for bankruptcy to retain certain essential assets such as furniture, appliances, clothing, personal effects, and tools of their trade. In specific cases, you may even be able to keep ownership of your home.
5 – My bankruptcy automatically leads to my spouse's bankruptcy.
False. While joint bankruptcy is an option, you can certainly file for bankruptcy without it affecting your spouse or partner.
6 – I should only consult a bankruptcy trustee as a last resort to avoid affecting my credit rating.
False. A consultation with a bankruptcy trustee will not impact your credit rating. Furthermore, if you are experiencing severe debt, it is highly probable that your credit record is already compromised.
7 – Filing for bankruptcy or making a consumer proposal is embarrassing.
False. Individuals who receive assistance from a bankruptcy trustee are better equipped to meet their financial obligations and, as a result, gain a sense of accomplishment. This enables them to approach the future with greater optimism. Furthermore, it is important to remember that you are not alone in this situation. In 2012, nearly 120,000 consumers filed for insolvency in Canada.
The team of professionals at Serpone Group in Montreal and its surrounding areas is here to help you overcome your debt problems and obtain the financial advice you need. We will provide a realistic assessment of your situation and demystify the sensitive topic of financial debt, all while offering tailored solutions.
For more information on debt myths and a first free consultation, contact Serpone Group today!
