Is Bankruptcy Right for You? 3 Points to Consider Before Filing

Dealing with debt is like swimming in the ocean during a storm: sometimes you’ll just barely keep your head above water and other times you’ll be drowning in it.

If you’re struggling to make ends meet, then filing for bankruptcy is like a life jacket – your hope for financial survival.

However, filing for bankruptcy is not an easy decision, as it will have a dramatic impact on your life. But contrary to popular belief, this impact is often one of relief and a way to move forward with a fresh financial start.

If you’re considering bankruptcy, there are a number of questions that you should consider.

Will Your Situation Improve?

Debt may be a scary situation now, but imagine yourself five years in the future. Do you see yourself with a better paying job? Is your hardship only temporary? Or will you find yourself even deeper in debt?

Bankruptcy helps many individuals reboot their lives and have a fresh start. Unfortunately, some individuals who file for bankruptcy fall into their old habits and make the same mistakes, winding up in debt yet again. Consider what kind of improvements you’d make if you were to file for bankruptcy and how you can make lasting change.

Will Bankruptcy Handle All Your Debts?

Bankruptcy is ideal for handling unsecured debt, such as credit card debt, lines of credit and even CRA debt. In fact, personal bankruptcy or a consumer proposal are the only solutions that eliminate tax debts.

Consider the assets and liabilities you currently possess. If the bulk of your debt is unsecured, it might be a good choice.

How Would You Feel If The Collection Calls Stopped?

As soon as a you file for Personal Bankruptcy you are immediately protected against any further collection calls or legal action from unsecured creditors. This includes the Canada Revenue Agency for income tax debt or Goods and Services Tax debt. Your creditors will now deal directly with your Licenced Insolvency Trustee.

Many people don’t seek help quickly enough because they feel ashamed for getting themselves into a bad situation. It’s important to note that you are not alone. In 2018, there were 14,394 insolvencies in Alberta (with just over 9,000 being consumer proposals). If writing off parts of your debt and having a solid plan to get back on financial track sounds like an appealing option, a bankruptcy might be just want you need.

Is Bankruptcy Right For You?

The word bankruptcy has several negative connotations, but when you consider all the facts, bankruptcy is just another tool in debt restructuring. The best option will depend on your unique financial situation.

At Faber we give you the advice you need to move forward. We understand how debt can be stressful and we’ve helped hundreds of Albertans get back on their feet.

Contact us today to schedule a free consultation with one of our experienced staff and let Faber find the right solution for you.