{"id":1261,"date":"2021-04-28T10:41:00","date_gmt":"2021-04-28T15:41:00","guid":{"rendered":"https:\/\/www.creditaid.ca\/blog\/?p=1261"},"modified":"2025-06-17T11:55:32","modified_gmt":"2025-06-17T16:55:32","slug":"canadians-on-the-brink-of-bankruptcy-heres-what-to-do","status":"publish","type":"post","link":"https:\/\/www.creditaid.ca\/blog\/2021\/04\/28\/canadians-on-the-brink-of-bankruptcy-heres-what-to-do\/","title":{"rendered":"Canadians on the Brink of Bankruptcy \u2013 Here\u2019s what to Do"},"content":{"rendered":"\n

If you\u2019re feeling financial stress, you not alone. Over half of Canadians are within arm\u2019s reach of financial insolvency<\/strong> thanks to the COVID-19 pandemic. The numbers are at a five-year high and don\u2019t seem to be falling anytime soon.<\/p>\n\n\n\n

Millions of Canadians wiped out their savings accounts<\/strong> during the heart of the pandemic and others relied on credit cards to make ends meet. But where does that leave them today?<\/p>\n\n\n\n

If you\u2019re coming off a job loss, shuttered business, or increase in bills, bankruptcy may seem like the only answer, but it\u2019s not. Here\u2019s what to do instead.<\/p>\n\n\n\n\n\n\n\n

Get Debt Advice<\/strong><\/h2>\n\n\n\n

First, don\u2019t react without getting professional advice. Bankruptcy seems like the \u2018easy\u2019 answer, but it comes with complications most people don\u2019t realize. A bankruptcy can affect your credit for at least 6 years after completion, whereas other debt solution options<\/strong> will have you rebuilding your credit<\/strong> within a year, sometimes less.<\/p>\n\n\n\n

Get Tools to Stay on Track<\/strong><\/h2>\n\n\n\n

Getting back on track may be as simple as cutting back on your expenses. If it\u2019s all too overwhelming for you, a financial professional (an unbiased opinion) can help. Cutting back on eating out, gym memberships, and other habits may be all you need to get back on track. Don\u2019t think of it as sacrifice \u2018forever\u2019 but a temporary solution to avoid bankruptcy<\/strong> and ruining your credit<\/strong> for at least 6 years after completion.<\/p>\n\n\n\n

Discuss other Options<\/strong><\/h2>\n\n\n\n

If cutting back on your expenses isn\u2019t enough, there are other options including debt consolidation<\/strong>, a debt management program<\/strong>, or a consumer proposal.<\/p>\n\n\n\n

Each option has its pros and cons, and the right solution for you depends on your situation. Working with a financial professional, you can look over your finances, decide what you can afford and which option will get you out of the financial issues with the least negative consequences.<\/p>\n\n\n\n

Why Bankruptcy isn\u2019t Always the Answer<\/strong><\/h2>\n\n\n\n

We often turn to bankruptcy by default, but here\u2019s how it could affect you:<\/p>\n\n\n\n