Knowing When it's Time to File a Bankruptcy or Consumer Proposal

Knowing When it's Time to File a Bankruptcy or Consumer Proposal

Life doesn’t always go according to plan. Unexpected life occurrences can happen to anyone and are simply out of your control, such as illness/disability, divorce, job loss etc. If you experience any of these, they can drastically affect your financial health.

In today’s world debt is a necessary part of life. Life comes at you fast and currently we must deal with rising interest rates, inflation dramatically increasing the costs of necessities, and huge jumps in rent. Many people will need to turn to debt to make ends meet and then It is extremely easy to find yourself in a position where you have more debt than you can manage.

Unfortunately, with compound interest charges and the inflated cost of life, once you are in deep debt it is extremely difficult to climb out. Many people in this situation act like an ostrich where they stick their head in the sand and choose to avoid the problem. This obviously does not help, and the debt tends to grow on its own and become more of a burden.

Others will choose to delay, procrastinate, and not seek help, out of fear or pride. They worry about the ramifications of bankruptcy and what others may think of them.

These behaviours lead to the worst result possible. They don’t achieve any real improvement in their financial situation, and they must live with the constant stress and fear of their finances. Financial problems can negatively affect your relationships with loved ones, as well as your mental and physical health. Living with constant money stress, stuck on a treadmill of paying minimum payments while struggling to buy necessities and meet the needs of your loved ones is no way to live.

I compare financial problems to like a bad toothache. Neither problem will get better on their own. Going to a dentist or going to see a Trustee in Bankruptcy can both seem scary and painful, but it is rarely as bad as you think and once you are done and the problem is gone you are so glad you did it. The comment I hear the most form my clients are “I wish I had done this much sooner.”

Nobody wants to file bankruptcy or a consumer proposal to reset their debt. But the reality is that if you are struggling with a lot of debt, it can be a reasonable and best option. If you don’t have a viable solution to pay your debt down in a reasonable time, then don’t delay seeking help from a Licensed Trustee in Bankruptcy. You are just prolonging the pain and life is too short to spend it unhappily.

A bankruptcy trustee is a debt expert that can assess your situation and develop the very best solutions to your financial problems. The bankruptcy Trustee will need to know how much you owe in total and what your monthly income and expenses are. The Bankruptcy Trustee can then design a personalized debt solution that’s best for you. It could be a Consumer Proposal where the Trustee will make a formal offer to your creditors to reset your debt to an affordable amount, or it could be a bankruptcy where the debt is wiped out and reset to zero. The solution will be based on what’s best for you, your financial situation, and your future needs. Whichever one is chosen it will be a permanent legal solution to solve your financial problems so you can go back to living your best life. With a consumer proposal there are no upfront fees, it costs nothing to try and you only make payments to your consumer proposal if it is accepted and legally resets your debt. Don’t delay, get your debt reset and get back to living your best life.