Reading the Signs – Do I Need To File for Bankruptcy?

The answer to this question is not an easy yes or no.  Here is a different question to consider first:  Are you in financial difficulty?  Following are some common warning signs.

  • Your credit cards are at their limits
  • You are using one credit card to make payments on another credit card
  • You missed the last payment on your car loan
  • You missed the last rent or mortgage payment
  • You are behind on property taxes or utilities
  • Collection agencies are calling you

Naturally, things like this cause people a great deal of stress.   When I meet with people in our Kitchener bankruptcy offices, my role is to help people understand all of their debt relief options.    That means that we will probably talk about personal bankruptcy, but only as a last resort.  Sometimes, we can identify ways to modify the household budget to be able to pay your debts in full.  Sometimes, people are good candidates for a consolidation loan, turning payments on multiple high-interest credit cards into one low-interest payment.

If I don’t think that personal bankruptcy is a good choice for you, I will tell you so. Another alternative that many residents of Waterloo region are turning to is a consumer proposal.  A consumer proposal in Kitchener-Waterloo is often a good choice for people who are unable to pay their debts in full, but want to avoid the negative consequences of bankruptcy.  Sometimes, bankruptcy means losing some of your possessions  and paying surplus income each month.  A consumer proposal is a way of protecting what you own and paying back a portion of your debts, usually over a 4 or 5 year period.

The bottom line is that if you are in financial difficulty, you need a plan for you and your family. Contact us today to set up a free consultation in our Kitchener bankruptcy office.