FAQ

redressement financier Syndic faillite N.Seguin

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 counselling 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.