The Office of the Superintendent of Bankruptcy Canada is reporting a 4.7% jump in personal bankruptcies and consumer proposals in June, compared to May 2020. (Ref.) And the CBC reported “A record number of companies have sought creditor protection under Covid-19 – and more are on the way. (Ref: Aug 05, 2020, Pete Evans.)
Once the government relief programs end, economic woes may get worse before getting better. No one is to blame for this, its all COVIC pandemic.
The good news is things may not be as bleak as they sound. If you have some financial resources available where you can consolidate your debt to get it under control, or liquidate items that you own to cover the balance of what you owe — most or all of it — that’s the first option.
Your second option may be to declare personal bankruptcy. While bankruptcy may sound painful, it may be the right solution to help you regain control of your personal finances.
Whether the best plan is a Canadian Consumer Proposal, debt consolidation or bankruptcy, both can give you some breathing room from creditors who may want to foreclose on your property, or garnish your wages for example. Filing for bankruptcy allows you to restructure your debt, will help re-establish your credit score long term, and more importantly, will give you peace of mind you have a plan!
Being in financial difficulty doesn’t necessarily mean you have failed. This pandemic has put a lot of good people in unimaginable situations. It’s likely time for many to let go of the stigma of shame. Everyone living through this pandemic knows how hard it has been on many businesses and those that work for them. In March of 2020, the pandemic forced the temporary closure of 85% of small business owners in Canada. Who could have predicted that? Who could have predicted the number of layoffs? Its been truly a struggle for millions of people and no one should be ashamed to reach out and ask us for help.
If you’re in a vulnerable financial situation, don’t wait. You’ll need some guidance when it comes to protecting your asset protection rights and consumer proposal options. Because the only thing worse than bankruptcy is the emotional torment of waiting too long!
As debt relief specialists, we have been preparing all of our locations across Ontario to help our clients with Personal Bankruptcy and Canadian Consumer Proposals. If you’re in a debt crisis, don’t wait too long to call us. If you feel like you’re in financial trouble, you probably are. And we can help you navigate this. The sooner the better!