Financial difficulties are something that many people will struggle with at some point in their lives. If you are having some problems that have become overwhelming then it may be time to speak with a professional that can offer their advice on if you need to file for bankruptcy.
Bankruptcy is a lot more common than many people think, and it happens to people from all walks of life. Many of whom had no advanced warning whatsoever.
When this happens it can be a real shock, so knowing that you are not alone and that there are many reasons that people file for bankruptcy can be a small relief. Also speaking with a professional bankruptcy expert you will start to feel like you have gained control over your finances.
1. The loss of a job
Losing your source of income can have a cascading effect on your ability to pay bills, your mortgage and other debts. Without any new money coming in, this can start to rapidly deplete your savings and cause you to go deeper into debt. Even when you find another job again, it may not be at the same pay as what you were used to.
2. Reduction in your income
This can be caused by a reduction in the hours you are able to work or a simple pay cut. No matter what the reason, this will cause you to have some difficulty in paying your bills. It may be possible to cut down on some of your expenses, but you won’t be able to do this for all of them. You will no doubt have some fixed costs such as your mortgage or car payments.
3. Illness or time unable to work
The good news is that as we live in Canada, a trip to the hospital is far less likely to cause you to lose your house due to unpaid medical bills. The danger here when it comes to your finances is that if you are injured or sick and unable to work you may not be able to bring any money in to cover your outgoings.
4. Surprise bills
Bills can come out of nowhere and even with the most robust budget all it takes is for your car to break down and your home to flood to tip your finances over the edge. The vast majority of people will not have enough saved to cover one, let alone two unexpected bills. So if this happens to you, know that you’re not alone.
5. Divorce or separation
When it comes to any divorce or separation, there is going to always be some sort of financial impact. This is sometimes positive, but it can also cause significant financial problems. You may need to sell your house, or pay some sort of child support. If you had joint expenses that you relied on two incomes to cover you may now find that you need to downsize or look to selling a car.
6. A lack of budgeting
This is something that you might have to own up to if you want to find the path to financial recovery. If you are habitually going into more debt that you can comfortably manage then you should probably take a good look at your monthly expenses. You won’t be able to fix the past, but you will be able to make some changes to how you do things moving forward.
If you think that you need to file for bankruptcy the first thing that you should do is reach out to a professional that will be able to guide you through the process. The sooner you start the process, the quicker you will be able to recover financially.