If you do decide to hire the services of one of our licensed insolvency trustees, we will discuss the various debt relief options that are open to you.
In some cases, it might be that filing for bankruptcy is your best course of action, especially if you are overwhelmed by your debts, and with little chance of paying them back.
On the other hand, it might be that a consumer proposal is right for you, as while you will still have to pay back part of your debt, you will be able to do so at repayments you can afford.
With years of experience, we have the ability to help you make the right decision.
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However, if you do decide to go bankrupt, we won’t then tell you how you should spend your money.
On the one hand, you will be glad of this.
After all, it’s your money, so when you are making a fresh financial start, you might not want another person telling you what to do with the cash you have in your possession.
On the other hand, you might want us to tell you how much you should be spending each month, as you might need that guiding hand to steer you away from any future financial mistakes that could lead you towards hardship.
Unfortunately, this isn’t how bankruptcy works.
We can’t tell you how to spend your money, as we aren’t in the position to do so.
But while we won’t tell you how to manage your spending, we can offer you some advice, both during our meetings and in our suggestions below.
Get in touch with us if you would like to arrange a free consultation, and read our advice below.
Managing Your Budget After Bankruptcy
If you are facing bankruptcy, it might be because you do have a problem with your spending.
This isn’t always the case, as it might be that your financial situation was made by circumstances outside of your control, but if you know you are partly to blame, you should make every effort to conform to better spending and budgeting habits after you have gone bankrupt.
This way, you are unlikely to fall into the same traps that got you into financial trouble in the first place.
- Use a budgeting tool to help you work out your income and expenditure, and monitor your financial situation regularly. These budgeting apps are useful in this regard, as is this advice on budgeting your money.
- Resist the urge to spend money on items you don’t need when you know that your bills and other expenses might be put in jeopardy.
- Seek the help of a financial advisor if you need support managing the money in your possession.
- Decide against applying for a credit card or any other type of loan when you are finally allowed to do so, unless you know you have the means to pay back the repayments necessary.
With the fresh start that comes with bankruptcy, you should stick to these better habits, as you will sidestep future financial problems if you do.
And if you are still contemplating whether bankruptcy is right for you or not, remember the advantages.
- You will eliminate the unsecured debt payments that are currently eating up a large portion of your monthly budget. So, if you are struggling to know how best to spend your money now, you will have a little more freedom to decide where it should best be used after bankruptcy.
- You will learn how to track your money during the bankruptcy process, as you will be asked to submit income and expense statements to help you calculate your potential surplus income.
- You will be forced to use cash after filing for bankruptcy, as you will no longer have access to sources of credit. This is a good thing, as you will learn how to survive without credit.
Despite the stigma people sometimes associate with bankruptcy, it is important to remember that you will have the opportunity to escape your debt burden, and you will have the added incentive to learn how to budget better.
So, while we aren’t here to tell you how to spend your money, whether that’s good news for you or not, we will encourage you to record your money each week, and our actions will force you to pay in cash.
When it comes to managing your money then, our interventions can only be seen as a good thing.
To find out more about how we can help you, and to discuss your debt relief options further, book a consultation with us at (877) 879-4770 or use our form to schedule an appointment.