One of the most common reasons that stops a person from contacting a trustee in bankruptcy is the fear of the unknown.  Hopefully our new blog will help reduce those fears and enable you to make informed decisions on what is best for you and your creditors.  

Life after a proposal or a bankruptcy will not be the same as before.  There will be changes that you will need to control.  In order makes some changes to recover financially and emotionally, you must ask yourself, “How did I get here?” and “What could I have done differently?”  The answers to these questions will help you reflect and regroup to create a better chance at financial success in the future. 

In most cases, one of the biggest changes you find once you have completed a proposal or a bankruptcy is that you are debt free. This change will give you less financial pressure and more disposable income with which to plan.  One of the best approaches for financial recovery is to become a saver.  This is the time to get serious about creating a realistic budget and sticking to it.  In addition, you must make a plan for the future to deal with unexpected events.  Doing so will keep you from falling into debt should the unexpected occur.  Building savings will give you peace of mind and confidence because you are prepared for your financial future. Further, when considering large purchases, remember “money talks”.  For example, you may be able to negotiate lower prices if you use cash instead of credit.

A comment often heard during consultations at our office is that you will not be able to obtain a credit card for 7 years after a bankruptcy or proposal.  This is simply a myth. Once you are discharged from your debts you will be able to obtain a secured credit card.  During a proposal, you may also obtain a secured credit card.  With a secured card, you usually deposit a specific amount, such at $1,000 into an interest bearing account, and that $1,000 becomes a credit limit.  This will enable you to begin to rebuild your credit rating immediately. Your credit rating will be affected for 6 years from your bankruptcy discharge and 3 years for a proposal from the date of completion.  During that time we recommend that you be proactive in re-establishing your credit. 

In conclusion, when you are exploring your financial options whether it is a consumer proposal or bankruptcy make sure that you separate fact from fiction and make the right choice for a fresh start.