As Canadians we live in one of the top 20 wealthiest countries of the world. So why is it that over 63,000 Canadians claimed bankruptcy in 2015? Let’s take a look at some of the possible reasons why so many people in Canada have to give up and claim bankruptcy.
Spending more than you earn
I still remember the time when if you wanted to make a larger purchase, you saved up until you had enough money to buy it. If you had to make cutbacks in certain areas so that you could put a few dollars into your savings account, that’s just what you did. Buy now, pay later was not how the majority of purchases were made. Nowadays, it seems as though a lot of people have a lot of credit and they are using it for unnecessary purchases such as vacations, new vehicles or just for a shopping spree. Spending more than what you can afford can only last so long. Once you are at your limit it can be tough to dig yourself out of the debt you have put yourself in. It is so easy to spend the money, but when it comes time to pay it back, it becomes quite difficult. This can leave people in a state of stress and despair and bankruptcy can seem like the only option.
Unexpected Loss or Misfortune
Sometimes unfortunate circumstances happen. Your wife passes away, your husband is unexpectedly laid off from his job or your business goes under due to a turn in the economy. Maybe your house burned down and you didn’t have insurance. There are many different reasons why you could suddenly be over your head in debt and it wasn’t your fault. Sometimes we go through tough stuff and we do what we think is best at the time to recover and move forward. Sometimes that solution is bankruptcy.
Maybe You Were Not Informed
It is quite possible that some people claim bankruptcy simply because they think that it is their only option. Unfortunately there are people out there who offer help to people who are in desperate situations, but they are really only in it to make money for themselves. These people may not let their clients know that there are other options available, and give the client the option that benefits them most, instead of what benefits the client.
At 4 Pillars Red Deer we work for our client, not for the creditors. That means we always have your best interest as our goal. We want you to be informed about your options and allow you to make the best decision for your situation. If you would like more information about what we do for our clients or you feel like bankruptcy is your only option, give us a call at 4 Pillars Red Deer 403-755-1757 to set up a free one hour consultation. One of our consultants will sit down with you and go over your current situation and present you with your options.
