Questions / Answers

Find answers to common questions.

General questions

This is a very delicate situation which cannot be resumed in a few words. To help you make an informed decision, we invite you to read our blog “Our 10 tips to guide you.” As you will see, several factors should be considered, not only when deciding whether to agree but also in terms of the precautions to take if you decide to lend the money.

Yes and no. Co-signing or guaranteeing a loan will have a direct impact on your future borrowing capacity. When a financial institution calculates your debt-to-income ratio, it will include the loan you guaranteed as if it were your own. As a result, because you are more indebted, you will be limited in the amount you can borrow.

That being said, co-signing does not necessarily harm your credit score. However, if the borrower (i.e., the person you guaranteed) defaults on the loan, the creditor can then ask you to repay the entire outstanding balance. You could be required not only to continue making payments on the loan itself but also to pay off the entire balance. If you are unable to pay that amount, your credit score will be affected, and you may face legal proceedings for the repayment of the loan.

What you need to keep in mind is that, aside from helping someone, guaranteeing or co-signing a loan carries several disadvantages and no benefits for you.

To learn more about the consequences of this generous act, we invite you to read our blog, “Does co-signing a loan for someone else affect my credit score?

Yes, it is possible, but not without consequences. If you wish to voluntarily surrender your home to your financial institution, the bank will have 2 options, which we explain in our blog, “Voluntary surrender of a house when unable to pay the mortgage.” Depending on the option they choose, you may (or may not) be responsible for the financial loss they incur, and you may (or may not) benefit from a profitable sale, if that is the case. However, it is important to note that regardless of how the bank proceeds, your mortgage will be associated with an M-9 credit rating, which is the note given when you file for bankruptcy.

Yes, you can. In our article, “Can I resolve my financial difficulties without losing my house or vehicle?” our trustees explain the various solutions. Some solutions will allow you to reduce your expenses in order to create a monthly budget surplus, helping you keep your house or vehicle. When such a reduction is impossible or insufficient, a debt reduction plan may be necessary. Among the range of possibilities, there is the consumer proposal and, as a last resort, bankruptcy—both of which may allow you to keep your house and/or your car.

For more details, we invite you to read our blog, and if needed, contact us for a virtual meeting (by phone or video) or an in-person consultation. It’s free, confidential, and without obligation. Don’t hesitate to reach out for an appointment or any other questions you may have.

When faced with financial difficulties, we can have the tendency to see things worst than they actually are. Indeed, emotions sometimes cloud our judgment, and it can be hard to imagine solutions if we don’t know what they are. That is why you should never hesitate to consult professionals such as Licensed Insolvency Trustees for an analysis of your financial situation, to answer all your questions, and to explain the various solutions available to you. Our article, “What are the solutions to get out of debt?” explains the 6 main solutions to debt and will give you an overview of the options available to you.

Understanding the issues surrounding personal finances, debts, and solutions to overcome them is a very important step. To achieve this, it is important to choose a recognized and competent professional, and most importantly, someone with whom you feel comfortable talking to. Being well-supported throughout this process will be the key to a successful reorganization.

To help guide you in choosing your Licensed Insolvency Trustee, we invite you to read our blog “What factors should guide me choosing a Licensed Insolvency Trustee?“.

A high debt ratio can seriously affect your financial health and well-being. In the blog “What are the risks of a high debt ratio?“, we explain what is a debt ratio, how to calculate it and we explain how to interpret the results. Finally, we review in detail the risks associated with a high ratio. Being well informed on this subject will help you be better prepared to take the necessary measures to avoid falling into a debt spiral.

As with any illness or health issues, prevention is always the best remedy. Knowing how to identify the red flags can help you avoid a debt problem from turning into over-indebtedness. It has been proven that the sooner you can intervene to correct a situation, the better your chances of resolving it with minimal inconveniences.

If you’re concerned about your budget or debts, or if you fear something might be wrong, we invite you to read our blog “Early warning signs of financial problems.” Our experts reveal the signs that can be early indicators of financial difficulties, as well as the actions to prioritize to rectify the situation.

The informational meeting is offered free of charge and will provide you with a complete analysis of your financial situation, as well as the different solutions to help you get out of debt.

We invite you to learn more about the goals and topics covered during the first meeting with one of our Licensed Insolvency Trustees by reading our article, “What can I expect from a first meeting with an insolvency trustee?

Often, the impact of our decision on our credit score is the biggest fear that people with financial problems have. Unfortunately, this fear prevents them from asking advice to find out more on the different options available to them. However, those who do seek advice are often surprised to find that debt solutions are not as drastic as they imagined. They leave our office with answers to their questions and potential solutions to get out of debt.

To learn more about the different options and their impact on your credit score, we invite you to read our blog, “How will my decision affect my credit score?