The 9 myths about bankruptcy and debt
Why is it important to be well-informed about bankruptcy and debt?
People rarely think about consulting a licensed insolvency trustee (LIT) about their debt when the first signs of financial difficulty appear. LITs are professionals who will direct you to long-term solutions to your financial problems.
Without the help of a LIT, myths about bankruptcy and debt tend to create incorrect information, leading to a misunderstanding of the situation and the solutions available. That’s why it is important to consult a professional to learn what is involved. You will have the tools to make the best decision about how to end your debt problems. You may even avoid bankruptcy.
What are the nine most common myths about bankruptcy and debt?
False. Unless you choose to talk about it, no one will know about your debt problems. If you do decide to declare summary bankruptcy or submit a consumer proposal, only your debtors will be notified. The process will be done in complete discretion.
False. While a bankruptcy affects your credit report, you can rebuild it. With good financial habits, you’ll be able to gradually improve your financial reputation with lending institutions.
False. Income tax debts, like most of your debt, will be erased at the end of your bankruptcy. The same occurs with a consumer proposal.
False. Measures exist to allow you to keep certain indispensable property items, such as furniture, appliances, personal effects and essential work tools. In some cases, you can even keep your car and house.
False. Unless there are joint debts, you can go bankrupt without any consequence on the spouse.
False. A meeting with a licensed insolvency trustee will have no impact on your credit rating. On the contrary, a LIT will provide appropriate advice to help you get out of debt.
How an individual feel’s after filing for bankruptcy or a consumer proposal is very personal and varies. It is therefore possible for some to feel ashamed. However, rest assured that we at Ginsberg Gingras will never judge you when you turn to us for help to manage your debt. In fact, people who benefit from our help quickly regain a sense of pride because they are able to fulfill their financial responsibilities and see the future in a positive light.
False. Bankruptcy is more common than you think. Each year, many consumers declare bankruptcy. In 2015 alone, more than 120,000 Canadians filed for insolvency. In fact, a recent Ipsos Reid survey has shown that one in ten Canadians made use of the services of a trustee during their lifetime. So, if you have to go bankrupt, you are not the only one.
False. Fees for licensed insolvency trustees are set by the Bankruptcy and Insolvency Act (BIA). Also, the first consultation is free and without any obligation.
How can we help you?
When facing financial problems, some people try to solve them without looking for information from a professional. Ginsberg Gingras licensed insolvency trustees are available to help you solve your debt problems. Their role is to demystify the myths around debt and bankruptcy and to provide you with complete information about the situation and recommend solutions adapted to your reality.