Will Filing Bankruptcy Or Consumer Proposal Affect My Children?

Many people take pride in providing a good life for their family and children and are wondering if filing bankruptcy or making a consumer proposal will affect their children.

People spend their whole lives working to provide a secure home, food to eat, and warm clothing to wear.

However, many Canadians are also dealing with a serious debt problem, which can take over all of your thoughts and feelings.

In this case many people decide to turn to a Licensed Insolvency Trustee for help with filing bankruptcy or making a consumer proposal.

Many of these Canadians are worried about how their bankruptcy or consumer proposal will impact their children.

If you are worried that your consumer proposal or bankruptcy will negatively impact your children’s financial future there is good news.

Your bankruptcy or consumer proposal will not impact your children, their financial future or their ability to go to school in the future.

How can bankruptcy or making a consumer proposal help you and by extension, your children?

Stop Creditors and Debt Collectors

After you file for bankruptcy or make a consumer proposal to your creditors, an automatic stay of proceedings will go into place.

This automatic stay is a legal motion that will prevent your creditors or a debt collector from contacting you for collection.

The harassing phone calls will stop coming to your home or place of work.

The past due notices will stop.

Wage garnishments will end, leaving you and your young family with more money.

You will have taken control of your debt problem.

Another bonus is that all of the communication and dealings with your creditors will be handled by your Licensed Insolvency Trustee.

Once all the debt worries are taken care of, you can refocus your energy and concerns onto your family and children.

Get Financial Literacy

When you file bankruptcy or make a consumer debt proposal, you must attend two financial counselling sessions with your Trustee.

During these financial counselling sessions, your Trustee will help you understand the reasons for your money problems, and will provide you with money management skills to avoid debt in the future.

You can take these skills to manage your finances properly and maintain a debt-free lifestyle as you rebuild your financial standing.

Additionally, you can teach these money management skills to your children, increasing the chances they will be able to avoid debt in their own future.

Maintain Good Financial Goals

When you are free of debt and the worries associated with it, you can begin focusing on positive financial goals.

We suggest you begin saving an emergency fund so you won’t be caught by surprise by any unexpected expense.

You can start saving in a Registered Education Savings Plan (RESP), so your children can pay for their studies in the future.

You can help them avoid the debt trap and get a better job so they can stay out of debt in their own life.

Finally, you can also start saving money so you can take your children on a vacation without going further into debt, or pay for them to join a sports team.

End Your Debt Stress

Debt is often the most stressful situation a person can deal with.

Debt often leads to divorce, health struggles, and fighting with your family.

Your debt worries often lead to sleepless nights and worries and anxiety.

When you take charge of your debts, you can end the debt stress and worries and become the best version of yourself for your children and other family members.

How Can I Get Help to Go Bankrupt or Make a Consumer Proposal?

If you are dealing with debt and your children are being impacted, remember going bankrupt or making a consumer proposal won’t only not negatively impact your children and other family members, dealing with your debt can actually assist your children towards a better life.

Fortunately help is available from a Licensed Insolvency Trustee.

Only a Licensed Trustee can provide consumer proposal and bankruptcy services in Canada.

If you feel like you need help dealing with your debt and finding the right debt solution, please don’t hesitate to contact one of our Licensed Insolvency Trustees in your neighbourhood.

Meeting with a Licensed Insolvency Trustee is the first step towards getting out of debt.

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