We said it, the earth didn’t move and you’re still here, reading this article.
Consumer debt in Canada is steadily growing – and so are bankruptcy filings. Younger generations are turning to credit cards and loans to bridge the gap between low income and high expenses. Older generations are struggling to live on fixed income while helping children and grandchildren stuck in the debt cycle. During 2017 alone the average consumer debt grew to $29,312. While this amount may sound manageable, imagine a sudden job loss, injury or illness. What would you do if your debt repayment plan became a debt struggle?
We recommend that you discuss your debt problem with a Licensed Insolvency Trustee. Here are five things about bankruptcy that might help make it easier to take this step.
- You Are Not Alone
In Canada there were almost 60,000 personal bankruptcies filed last year. At Spergel, we meet with new people every day who are considering bankruptcy as a solution to their debt problems. If bankruptcy is the right solution for you there is no reason for you to feel like you are alone. With so many Canadians facing the same difficult financial decision that you are, believe us when we say that you are not alone.
- The Consultation Process Is Free
Licensed Insolvency Trustees do not charge for an initial consultation. You should not have to pay to learn about your options. A consultation will supply the information that you need without any commitment until you are ready to move forward. Why pay for help when you can talk to a Trustee for free?
- Sometimes Bankruptcy Isn’t the Answer
You won’t know if bankruptcy is right for you until you learn more about the process. The best part about talking to a Licensed Insolvency Trustee is that you will get the information you need to understand bankruptcy. You will also learn about alternative options that may be a good fit for you. For some people bankruptcy is not the best decision and another solution may work better.
- You Will Need a Licensed Insolvency Trustee
The Canadian bankruptcy process is monitored by our Federal government. Trustees are granted a license after completing years of tests, training and studying. The Bankruptcy Act requires that a licensed individual oversee the process and this is why you cannot file on your own. So, even if you are unsure if bankruptcy is right for you, a Trustee is always the best source for information about the process because of the training and education provided to them.
- Life After Debt – You Can Have Good Credit Again
People worry that “going bankrupt” is trading debt relief now for a credit-less future. Bankruptcy does not mean the death of your financial goals and dreams. Dealing with the debt problem you have now will help that you get back on track to begin working towards your goals and dreams again – debt free. A first time bankruptcy will remain on your credit record for approximately 6 years, but that doesn’t mean you have to wait to begin rebuilding your finances.
Bankruptcy is a good solution for many people facing debt problems today. However, fear of becoming a “bankrupt person” can make it hard to ask a Licensed Insolvency Trustee for help. With all of the myths and misunderstanding surrounding the bankruptcy process, it’s not really surprising that this option can be overlooked while searching for a debt solution.
A great strategy for approaching fear is to look at the least desirable outcomes first and then work through your alternative options. A Licensed Insolvency Trustee will demonstrate what bankruptcy looks like for you and then work through alternative solutions as well. We can help you find the solution that makes the most sense.
If you are ready to learn more about the options available to you, Spergel’s team of Licensed Insolvency Trustees are here to help. Please call us at 310-4321 to schedule your free consultation today.