Should I consider a personal bankruptcy?

If the answer were simple, bankruptcy trustees would all declare bankruptcy. All joking aside, bankruptcy is an option that requires serious reflection. Personal bankruptcy can be a difficult choice to make for an individual who has serious financial problems. Several factors, including the fear of social stigma, may discourage the indebted individual from contacting a bankruptcy trustee.
Here are some things to consider if you’re in financial trouble and are considering bankruptcy. Indeed, bankruptcy may be the light at the end of the tunnel that helps you restore your credit with the expertise of a qualified trustee.
But first, you should analyze your financial situation.

Here are some signs that may indicate that it might be best to consult a bankruptcy trustee:

  • You debts total at least $1000;-You are unable to repay your balances on schedule;
  • Your credit cards and lines are filled to capacity;
  • You are being harassed by your creditors;
  • You do not open mail that resembles bill statements;
  • You’ve lost your job or have suffered a significant decline in your income.
  • Several other factors may also make you consider bankruptcy as the only solution to your financial worries.

    Even if you are considering personal bankruptcy, be aware that a bankruptcy trustee may suggest alternatives. A trustee will help you evaluate your situation in depth and suggest a plan suitable to your situation.
    Moreover, a trustee can explain in detail some interesting alternatives such as consolidation loans, the law on voluntary deposit, or consumer proposals.

    Some statistics on personal bankruptcy …

    Many see bankruptcy as giving up and never being able to recover. It’s almost as though fate fell upon them, and they fear that they’ll be forever branded as losers in the eyes of banks and lenders. However, if bankruptcy is your situation, you are not alone. Some interesting statistics: between 1990 and 2009, business bankruptcies have declined by 65% while personal bankruptcies have increased by 116%. 145,223 Canadians have either declared bankruptcy or under went a consumer proposal within the 12 months preceding June 30, 2010. In 2009, consumer debt has increased by 145% of annual income. This means that the average Canadian is in debt for $6 for every $4 earned in salary annually.

    What are reasons that may explain the increase in personal bankruptcies in Canada?

    According to several experts, it seems that Canadians have easy access to credit. For example, people in debt are still able to purchase superfluous and expensive gadgets. Then, when the monthly bills arrive, they realize that they’re not able to repay their balances.
    Additionally, the cost of living has increased dramatically over the years and income levels don’t seem to follow the rising prices of goods and services.
    Interest rates have also rose dramatically, and holding a mortgage constitutes a significant financial burden for Canadian households that wouldn’t be able to withstand a sudden loss of income or a higher interest loan without major impact.

    Take the first step and regain your financial health!

    By filling out the form located on the right of your screen, many bankruptcy trustees will receive your request and propose an offer via email. Choose one that suits you most, and see the light at the end of the tunnel!

    Some useful links:

    http://www.bankruptcycanada.com/bankstats1.htm

    http://www.forbes.com/2009/02/10/small-business-bankruptcy-entrepreneurs-finance_0210_bankrupt.html

    http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02560.html

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