Groupe Serpone

The coronavirus pandemic has created financial uncertainty worldwide. On both governmental and personal levels, the effect of the pandemic is reflected in an unprecedented situation in relation to debt in Canada.  According to a BBC report, around a third of the workforce in Canada has been forced into unemployment due to coronavirus, subsequently causing a strain on finances. This challenging situation is reflected in the Canadian government deficit as they have attempted to roll out support programs to provide financial aid to those in need.  These systems along with a halt on debt collection has proven effective in helping families, individuals and businesses across Canada stay afloat and ensure their credit score is not negatively affected.  However, these systems will not be in place forever, and debt collection has already been given the green light to restart. Therefore, a lot of people in Canada are finding themselves in a compromising position regarding their...

Debt generates a lot of anxiety and tends to make the debtor’s life a real ordeal. Fortunately, some legal solutions can free you from your financial problems and give you a new balance. Consumer proposal and bankruptcy are two options regulated by the Government of Canada, both of which are designed to pay off your debts and free you from your creditors. To make the best choice that fits your situation, you need to understand how these two processes work and what the difference between the two is. What is the difference between a consumer proposal and bankruptcy?  They are two separate legal processes that allow you to free yourself from your debts and stop collection measures.  Declaring bankruptcy or filing a consumer proposal requires the intervention of a licensed insolvency trustee who will help you make the best choice according to your income and assets.  What is the consumer proposal? This is a legal process that aims to reduce and consolidate your debts. ...

If you default on your mortgage, you risk losing your home to foreclosure and falling further into debt. Depending on your financial situation, the stakes of mortgage foreclosure vary and bankruptcy may be one of the steps you can take to combat foreclosure. In order to make the best financial decisions for you, it is important to be well informed about the solutions available to you and to seek the advice of a licensed insolvency trustee to guide you in your choices. What is mortgage foreclosure?  If you fall behind on your mortgage payments, the lender may decide to take you to court. The lender may decide to sell your home by exercising a right of sale to collect the debt or become a foreclosed homeowner. In this second option, the lender can obtain an order from the Supreme Court of Canada to repossess title to your property. If this happens, all of the mortgage payments you have already made, the various amounts invested in the home, and the equity in the home will be los...

If you want to get rid of your debts but can no longer cover the exorbitant amounts you have to pay each month, you should consult a Licensed Insolvency Trustee (LIT) to analyze the financial solutions available to you. Sometimes it is difficult to pay off all your debts and bankruptcy may seem to be the only way out. Fortunately, there are other options available to you such as a consumer proposal . This is a solution provided by the Bankruptcy and Insolvency Act that consists of making a proposal to your creditors in order to repay your debts and avoid declaring bankruptcy . In this article, we detail the important points to know about the consumer proposal. What is a consumer proposal?  A consumer proposal is a Canadian government-approved debt solution that enables you to consolidate and reduce your debts. This program gives you the opportunity to pay off your debts without interest according to a well-defined process, and reduces your debt up to 70% of its initial value....

Have you accumulated a lot of debt and no longer know where to turn? Are you on the verge of bankruptcy and can no longer manage your finances? Before declaring bankruptcy, consider all of the options available to you, including debt consolidation which could be the ideal solution. Consolidating your debts is getting a one-time loan to pay off most or all of your debts, ultimately giving you peace of mind and getting back to normal. If you choose this alternative, you will be able to pay a more affordable monthly amount to a single creditor thanks to lower interest rates. There are various types of consolidation loans that vary depending on your situation and that have different requirements depending on the lending financial institution. What is debt consolidation? Debt consolidation is a financial transaction that involves borrowing a new loan from a financial institution in order to pay off the majority or all of your debts and repay a single creditor. This debt relief solutio...

Your credit score may seem like a simple indicator to you, but it can have a huge impact on your finances. Most people don’t give enough importance to their credit scores. Yet having a good credit rating is essential to apply for a car, student or mortgage loan, as well as for renting an apartment or getting a job that involves managing money. If you aren’t careful with your credit rating, you may have to pay a higher interest rate on a loan or credit card account. A credit score provides information to your future creditors about your creditworthiness and your ability to manage your money well. If your credit rating is low, you may have difficulty getting a loan and lose a lot of money. Fortunately, you can improve your credit rating by changing your habits and adopting financial optimization strategies. Follow the advice in our article on how to improve your credit rating to regain the trust of your lenders. What is a credit score? A credit score is an assessment of an individua...