job loss in Victoria and bankruptcy

Job loss is one of the most devastating events a person can face – emotionally and financially.

If you’ve recently lost your job and aren’t sure how you’re going to pay back the debt you owe, you’re not alone.

That’s because…

Canadians continue to increase their debt load.

We now owe over $21,000 on average, not including mortgage debt.[1]

And most Canadians aren’t prepared for life’s unexpected events, such as loss of a job.

Consider these statistics:

  • Nearly half of Canadians live paycheque to paycheque;[2]
  • 56% of Canadians have less than $10,000 available for emergency funds;[3] and
  • Almost 1 in 4 probably couldn’t get together even $2,000 if an emergency came up in the next month.[4]

This means that when something unforeseen happens – like getting laid off, or having to pay for home or car repairs – most of us aren’t able to financially handle the event without tail spinning deeper into debt.

If you’re reading this article, you probably fall into the category of having no – or insufficient – emergency savings on hand to get you through this difficult time.

But bankruptcy does not have to be inevitable.

These 3 tips may help you avoid bankruptcy after losing your job.

#1. Don’t live off credit cards with high interest rates to get you through the stretch.

You probably don’t know how long it will take you to find your next gainful means of employment. Depending on your profession, it may take weeks, months, or even years.

Relying on high-interest debt to get you through this period will only compound what you owe at what will feel like a speed faster than that of light.

#2. Reassess your budget.

Now is the time to look at your lifestyle and make the necessary cuts so that you’re spending on the essentials only – that is, your needs, not wants.

This will take a lot of sacrifice on your part.

Consider big savings, like finding a better insurance deal or cancelling gym or other memberships you may have. You might even temporarily cancel your cable until income starts flowing again.

Remember, every little bit helps. Start preparing home meals instead of dining out, skip going to the movies, and forgo those $6 designer coffees.

#3. Consult a Licensed Insolvency Trustee.

But perhaps the most important thing you can do when you’re facing financial difficulties is to consult a Licensed Insolvency Trustee.

In fact, it should be your first step when you are facing any financial difficulties and realize that you need debt help.

Yes, it’s true that you can only file for bankruptcy with the assistance of a Licensed Insolvency Trustee.

But these federally-regulated and licensed professionals are also qualified and able to assist you with a full range of debt relief options.

At your initial, free consultation, a Licensed Insolvency Trustee will review your financial situation and advise you on each of your available options. They will even give you their seasoned opinion on the best solution for your situation.

And remember, the earlier you seek help, the more options you may have.

Don’t wait until bankruptcy is your only option…

Get the debt help you need today, so you can live a happier financial tomorrow.

And while navigating job loss is no doubt a difficult journey for you and your family, having the professional assistance you need to get you through it – and getting started as soon as possible – will hopefully keep you from bankruptcy.

If you’re faced with the sudden loss of your job, or are struggling with debt and have questions, contact our offices today.

[1]https://globalnews.ca/news/3512571/canada-housing-debt-bankruptcy/

[2]http://business.financialpost.com/personal-finance/retirement/nearly-half-of-canadians-living-paycheque-to-paycheque-and-that-has-big-consequences-for-retirement-security

[3]https://beta.theglobeandmail.com/globe-investor/personal-finance/household-finances/more-than-half-of-canadians-have-less-than-10000-set-aside-for-emergencies-bmo/article26172527/?ref=http://www.theglobeandmail.com&

[4]http://business.financialpost.com/personal-finance/retirement/nearly-half-of-canadians-living-paycheque-to-paycheque-and-that-has-big-consequences-for-retirement-security

Photo by Louis Blythe on Unsplash