In 2008, the economic crisis hit a wide number of different industries including the truck transport sector.
It left a lot of drivers struggling to make ends meet and ultimately relying a lot more on credit as well as loans.
Many stumbled onto bad luck and were unable to get back on their feet.
Some will have even needed to deal with personal issues such as divorce.
Divorce is believed to be one of the leading causes of debt today.
Alternatively, other individuals might be suffering from health issues and this can also lead to the costs to grow as well as limitations on income.
While there are government support options for people suffering from health issues or a long term disability, it’s possible that this won’t be enough.
The debt can still grow over time and eventually, a lot of people will come to the conclusion that bankruptcy is the only option.
What steps should you expect if you find yourself in this situation?
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Filing For Bankruptcy
The first step is to ensure that there are no better options rather than bankruptcy that could be suitable for you.
To do this, you need to make sure that you speak to a licensed insolvency trustee.
They will present the possibilities and ensure that you are aware of the benefits as well as the limitations.
If you are certain that you can’t afford monthly payments that come with a consumer proposal, bankruptcy probably will be the best choice.
When you file for bankruptcy you will be declared insolvent.
All your assets will be placed in a trust to pay off your creditors but there are exemptions that can include your vehicle or your home.
Your bankruptcy must be approved in a court however with the support of the right trustee, this is usually a smooth process.
Be aware that bankruptcy will not clear secure debts such as a mortgage.
This is why you should make sure that you are catching up with your mortgage payments, potentially before you file.
The whole process of bankruptcy can take over a year to complete.
Once you are discharged, your debt will be wiped clean and you will be able to start fresh.
However, it will take some time before you are able to build up your credit rating and restart your finances.
It can be a long road but if your debt has become unmanageable, it can be the right choice.
We hope this helps you understand the key steps that you will need to take on your road to financial recovery as a transport truck driver.
Remember, there are a wide variety of different debt relief options available on the market.
We can help you here.
Contact us on the phone and a friendly member of our team will provide expert support.
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