Are you thinking about bankruptcy? If so, then make sure that this is your ONLY option.

To arm people with knowledge combined with financial problem solving and stress management skills, would be far more productive and beneficial for someone in financial distress. This is the approach that The CFW Group takes.

What Is Bankruptcy?

There are many descriptions passed around as to what bankruptcy actually is. The bankruptcy sector describes it as a FRESH START to rebuilding your credit and eliminating debt that you are unable to pay. At the end of the day, if a bankrupt is or will be hoping to rebuild credit standings with potential credit grantors, bankruptcy will either destroy or delay your chances significantly of receiving this promised fresh start. It is not the rebuilding of credit that one should be focused on. The rebuilding of business/financial relationships is where one must start.

Are Consumer Proposals a Product of Bankruptcy?

Yes, Consumer Proposals are Bankruptcy.

If someone tells you that Consumer Proposals are not bankruptcy, but only an alternative, this is incorrect. The Bankruptcy and Insolvency Act (B.I.A.) clearly describes its programs or services. Consumer Proposals are widely advertised by the bankruptcy sector because they are the most lucrative activities of the firms that conduct bankruptcy services. 

Remember, any service or program regulated or governed by the Bankruptcy and Insolvency Act is Bankruptcy. There is no way to prove otherwise. So, if you are ever to be told (or solicited) by a bankruptcy firm, and they offer you an alternative to bankruptcy, or a miraculous fresh start, be on the alert. Make sure that you investigate ALL of your options before falling into the precipice of bankruptcy.

The three programs or services governed by the Bankruptcy and Insolvency Act are:

1. Traditional bankruptcy
2. Consumer Proposals
3. Orderly Payment of Debts (OPD)

Is Bankruptcy The Right Thing For Me?

Bankruptcy would be a solution for you if:

1. You are permanently disabled and have no means to meet your financial responsibilities now, in the foreseeable future, or ever.
2. You have defaulted bankruptcy's OPD Program and creditors are in a position to execute against your wages or property regardless of your appeals for a satisfactory outcome.
3. You have absolutely no intent to honor your financial responsibilities.

An important thing to remember:

Fear and lack of awareness cause people to go bankrupt.  When you are armed with financial knowledge, skills, and hurdle-jumping ability, you will always succeed.

For instance:

Garnishments (wage assignments) can be reduced, and even halted, to give you that second chance.
Creditors will negotiate with you if you know your stuff
Collection agencies are powerless over you if you are empowered to overcome their objection(s) and fear installation tactics.
Personal credit relationships can be improved, rebuilt, or even rehabilitated.

Talking to your Creditor(s)

When you reach that point, and you know you are behind a considerable number of payments on your account, the first thing that you may feel is fear or a sudden feeling of anxiety. It is a very uncomfortable feeling when it is realized that an account is about to be shipped off to collection somewhere. This could have been avoided if you would have communicated with your creditor(s).

When you are just slightly behind with a payment, the best thing to do is communicate with your creditor at this crucial juncture and see what can be done or what they can do for you. Communication will solve problems. When talking with creditors, always try to be positive when interacting with them verbally, and ask questions when you are not sure of something that you are being told. TAking notes will also help you, and ALWAYS document who speak with, including contact information.

If you are at all uncomfortable talking with a creditor due to heightened fears associated with debt pressures, call The CFW Group and request some navigation and coaching services. This will help you greatly in your approach and interaction.