Knowing that you’re in financial danger is the first step to finding a way out. Insolvency is a state in which you cannot afford to pay back your debts. Insolvency is determined by a trustee in bankruptcy, more recently known as a Licensed Insolvency Trustee. It’s also something that can happen slowly. You may not even be aware that you’re headed toward insolvency right away.
If you’re worried about your finances, take a look at these financial danger signs. If you find that several apply to you, it may be time to talk to a trustee in bankruptcy about your options. The earlier you talk to an expert, the more they can do for you. For example, GTA-based trustees in bankruptcy David Sklar & Associates often recommend consumer proposals in Ontario over bankruptcy. Unlike in bankruptcy, you don’t have to lose any of your assets or equity to settle debts in a consumer proposal in Ontario. But if you ignore the financial danger signs for too long, you may not be able to qualify for a consumer proposal in Ontario.
Don’t ignore your financial health. Check for these danger signs if you’re worried about the future:
- You Can’t Pay Bills – If you’re leaving bills unpaid long past their due date, you’re in trouble
- Your Utilities Are Have Been Cut Off – Heat, hydro, cell phone service, cable, if you can’t pay utility bills, often the only recourse companies have is to cut off service. When a utility company is the only provider of that service (such as hydro), after declaring bankruptcy or getting a consumer proposal, they must still provide the service to you, but you may have to prepay.
- You’re Borrowing Money – When you start asking your friends and family to borrow money, it’s a sign that you’re living beyond your means and you’re not financially stable. If you are working and you still find you don’t have enough money, talk to a trustee in bankruptcy like David Sklar & Associates for help with budgeting and paying back debt.
- You’re Getting Calls from Debt Collectors – Debt collectors are not fun people to talk to. They can make your life miserable. Creditors put debt collectors in charge when they’ve given up expecting you to pay your bill without additional pressure.
- Your Wages Have Been Garnished – This is one of the most financially devastating thingsthat can happen to you, as you lose control over part of your income to pay for unsecured debts. When you file a consumer proposal in Ontario, wage garnishments must stop. Talk to trustees in bankruptcy David Sklar & Associates for more information about protecting yourself from unsecured creditors.
- You Use Your Credit Card for Everyday Expenses – You can go quickly into debt if you’re using your credit card to pay for things like groceries, your bills, or gas without the money to pay for it. If you’re using one credit card to pay down another, you could be in serious trouble.
If you’ve recognized any of these signs in yourself, talk to a trustee in bankruptcy before it’s too late.