Keeping your money under control is never as easy as it sounds.
Even with all of the planning in the world, it will be impossible to avoid the unexpected with your finances, and a lot of people end up in trouble with this side of their life.
Filing for bankruptcy is a common approach to solving money problems, but it often makes people feel bad for taking it.
To help you out with this, this article will be exploring some of the things that can cause people to look at bankruptcy, along with some reassurance that it isn’t all your fault.
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Why Do People Need Bankruptcy?
When people think about bankruptcy, they will usually have visions of someone who has been really bad with their money in mind.
Of course, this can certainly be the case, and poor money management will often lead to problems, but there are also a lot of common life events that can leave you struggling for money.
- Out Of Work: Finding yourself out of work can make life incredibly difficult.
You will have to rely on your savings until you can find new work, and this often bleeds people dry and forces them to look at options like debt.
After just a few years out of work, bankruptcy could be your only choice, and this certainly doesn’t make you a bad person.
- A Growing Family: While it’s no secret that raising a family will be expensive, people often don’t plan well enough for this sort of life event.
The growing costs of having a child can quickly make it hard to balance your finances, but this is money you simply have to spend, and this can leave people in a difficult position.
- Mounting Debt: Taking on a loan can often feel like a safe way to get some money, with most people assuming that they’ll be able to cover the costs when payments are due.
Of course, though, you might not be able to afford this when the time comes, and this could easily cause you debt to mount up and become unmanageable.
As you can see, it’s all too easy to find yourself in financial trouble.
These are just a handful of the common causes of bankruptcy, but there are countless others, and this means that you have no reason to feel bad when you’re going through this process.
Instead, you just need to be proactive when it comes to taking action.
Is Bankruptcy Bad?
It’s easy to look at filing for bankruptcy as being inherently bad.
In reality, though, it’s usually the position you’re in that will be bad, and the bankruptcy is merely a mechanism to help you out of it.
This makes bankruptcy a saving grace in a lot of cases and is just another reason to hold your head up high when you make the decision to use it on your own money.
You can view this as the beginning of your new financial life, providing you with a fresh start once you get over the work involved.
There are a number of benefits that come with bankruptcy that shouldn’t be ignored, as they will influence the decisions you make as you go through this process.
These benefits are just more reasons that bankruptcy is a positive force in your life, offering the opportunity to take a new path and enjoy a life free from suffocating debt.
The Benefits of Bankruptcy
- A Stay of Proceedings: A stay of proceedings is a process that will halt lawsuits, wage garnishments, and harassment from your creditors.
This will give you the chance to escape the stress and plan for your financial future.
- Trustee Support: Filing for bankruptcy means that you will have a trustee working with you to offer advice and control the most important aspects of your finances until you’ve been discharged.
- Reasonable Repayments: One of the biggest challenges people face with debt is that payments become unreasonable.
Getting a consolidation loan will be hard, as your credit score is likely to be in bad shape, leaving bankruptcy as the best way to make your repayments more reasonable.
- A Fresh Start: Bankruptcy isn’t a permanent state of affairs, and most people will manage to get themselves out of it within a few short months.
Once you get to this point, you will effectively have a fresh start with your money.
How Does Bankruptcy Work?
By getting in touch with an insolvency trustee like Bankruptcy Canada, you have get the ball rolling with advice surrounding your finances.
Our expert team will be able to provide alternatives for bankruptcy if you have any, while also handling all of the complex paperwork that comes with it.
We will work with you for the duration of your bankruptcy, acting as your trustee to keep you on the right track.
It will take some time to work through your finances, and this process could be challenging.
You may need to sell assets and sacrifice a large portion of your salary, though this will all be worth it in the end.
Each of your payments will go through your trustee, ensuring that they arrive on time and in the right amounts, and you won’t have to deal with a range of creditors anymore.
Once you reach the end of your bankruptcy, you will be able to enjoy the freedom that comes with it.
A lot of people feel bad when they are considering bankruptcy, but you should never let this reflect on the way you feel about yourself.
If anything, you should be proud of taking action where a lot of people would crumble.
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