Bankruptcy is not an anomaly. It happens all the time to hard working Canadians who have been victims of circumstance. In fact, in 2016, more than 125,000 Canadians have been subjected to hard times, whether it was because they were inflicted with Mephistophelean consumerism or they lost a job and relied on credit to get by.
Let’s be honest: bankruptcy is never easy. No one will argue this fact. It is a bitter, heart wrenching, and arduous process that can make you feel as tiny as a bug.
One way to ensure you’re not going through this stressful affair alone is by using a licensed bankruptcy appointee. These are professionals who are appointed or selected to oversee or manage a specific bankruptcy case. Their duties vary from case to case, but they have become critical to so many households who have had to file for Chapter 7 or 13.
Since bankruptcy trustees have seen and done it all, they want to pass on some of their wisdom. They want you to know a few ways to survive this agonizing but brief incident.
Here are five bankruptcy survival tips from bankruptcy trustees:
1. Find a Trustee Right Away
The sooner you find assistance, the better it is for you and your household. Since you will have a wide variety of options, you can find a myriad of ways to resolve your debt setbacks.
Once bankruptcy is in the air, you should reach out to a bankruptcy trustee almost immediately. This professional can provide a list of options that can allow you to tackle the matter head on.
2. Locate a Trustee Through the Government
Ultimately, you will want to find a trustee that is licensed, trusted, and suited to your needs.
You might be wondering where exactly you can locate such a bankruptcy trustee. Well, first, one of the best ways to determine you have tapped a reputable bankruptcy trustee is to peruse through the Government of Canada’s Licensed Insolvency Trustee registry. The Office of the Superintendent of Bankruptcy, or OSB, grants a license to trustees to ensure they are trained and knowledge.
In addition, there are other ways to find a trustee:
- Always do your due diligence by searching for websites and reading reviews.
- Ensure a trustee is conveniently located.
- Present any questions and concerns you have and make sure they answer satisfactorily.
3. Don’t Rely on Others for Expectations
Many insolvent Canadians feel guilty or ashamed that they have entered this phase of their lives. Their friends or family may be living rich and rewarding lives with a beautiful house, two cars, annual vacations, and the list goes on. This may make you feel like a failure, but don’t.
Life happens. A bankruptcy is no different. It’s just a hurdle to overcome.
Don’t rely on others for any of your life expectations.
4. Keep Your Spending in Check
A common mistake that bankrupt consumers make is that they think is a get out of jail free card that will allow them to go on a spending binge again. It isn’t.
Bankruptcy trustees have seen households way too many times just get back into debt again.
Indeed, a bankruptcy offers you a clean slate, but you should take advantage of it by keeping your spending in check. Ditch the plastic, use cash, stick to a budget, and change your ways.
Otherwise you will return to bankruptcy court in a couple of years again.
5. Work With Your Trustee to Tailor Your Needs
Lastly, when you have narrowed your list down to a handful of bankruptcy trustees, you need to make sure that you’re comfortable and confident with your trustee. You need one that is tailored to your specific needs and has knowledge with your type of case.
If you don’t feel confident, then you should move on and find another professional.
Tens of thousands of Canadians every year file for bankruptcy. It’s a part of life, especially when a life-changing scenario happens: a death in the family, a lost job, a sickness, and the list goes on. Many households are already hanging on by a thread, so imagine what it’s like if an emergency arises. When it happens, we get ourselves into a fiscal disaster.
Bankruptcy can be a life raft for many consumers, but it can also be a confusing, difficult, and unforgettable experience. Be sure you have a bankruptcy trustee by your side. You’ll need one.