Why More Canadians Are Considering Bankruptcy Assistance (And What to Do If You Are One of Them…)

  • By Jillian Taylor-Mancusi

Interest rates are rising across the nation.

And while this can be a blessing for those of us that are savers, plenty of hard-working Canadian debtors are concerned that this will put them only deeper into the red.

In fact, according to a recent survey, a whopping 30% of Canadians fear that the rising interest rates will push them into bankruptcy.[1]

Are you one of the 30%?

If so, you’ve got good reason to be on alert.

That’s because even so-called slight increases in interest can make a huge difference, especially to those that are already financially struggling.

Consider this: If you have a substantial mortgage, the interest hike can mean an increase of several hundred dollars in your mortgage payment that you may not be able to come up with.

If you are contemplating bankruptcy assistance, you’re already taken a huge first step in the right direction to getting help with your debt. You also likely have plenty of questions.

What are some of the advantages of bankruptcy?

Bankruptcy is a legal process that helps honest debtors eliminate their overwhelming debt so they can start fresh. And while bankruptcy is not a decision to be taken lightly, it does offer significant advantages.

One such advantage is that once you file for bankruptcy, you get immediate protection from your creditors. Your unsecured creditors are stopped from proceeding with collection efforts against you. That means an end to collection calls, garnishments, frozen bank accounts, and lawsuits. The idea here is to give you time to breathe so that you can get your affairs in order.

Another benefit to bankruptcy is that if you meet all your obligations, for a first-time bankruptcy, you will typically be discharged completely of the unsecured debts covered in your bankruptcy in as little as 9 months.

When should I get help with my debt?

If you’re any having issues coping with your debt, the best thing you can do is to get professional help immediately. Doing so opens up your debt relief options. Bankruptcy may not be inevitable.

Where do I get assistance with bankruptcy?

The Canadian government requires debtors to file for bankruptcy through a Licensed Insolvency Trustee. These federally-regulated professionals will guide you through the bankruptcy process. But that is not all they can do. Licensed Insolvency Trustees are qualified to provide you advice on a full range of debt relief options, from creating a budget right down to filing for bankruptcy.

What happens when I go to a Licensed Insolvency Trustee?

Your initial consultation will be free. At this meeting, we will comprehensively review your financial circumstances and provide you with all available debt relief options. We’ll even give you all the options and information, so that you can make an informed decision as to what is in the best interests of you and your family.

Our mission is to help you find a solution to your debt problem, so you can start fresh on the journey to better financial health.

Will I be able to afford bankruptcy?

Bankruptcy was created to help honourable Canadian debtors saddled with debt obtain a fresh start. The fees associated with bankruptcy are regulated by the government and are based on your income and ability to pay.

Get Bankruptcy Assistance in Winnipeg Today

Want to learn more about how we can help you get out of debt? Contact us today for your free consultation. And remember, the sooner you get help, the more options you may have available to you. We look forward to hearing from you.

[1] https://globalnews.ca/news/3962467/credit-card-debt-savings-canadians/

Photo by Bryan Minear on Unsplash

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