Tips to Avoid Bankruptcy

Tips to Avoid Bankruptcy

Nobody want to declare bankruptcy, aside from the toll it will take in an individual’s credit score the mental impact can be  staggering to anybody. That said, and given the impact that bankruptcy can have on people, this week’s blog offers up some helpful tips that can serve as advice to help you or your clients stay away from the dreaded “B” word.  Below are 4 quick actions that anybody can take to start down the road to avoiding insolvency and getting their financial life back in order.

Sell your assets

Often a quick way to generate some cash is to sell assets.  We all have things that we have accumulated over time, and with options like eBay and kijiji available to us all it is easier than ever to rid oneself of things we no longer need or use, but still possess some value on he open market. As debts rise, and access to  cash is needed, selling things we no longer use is a great first step to staying away from going bankrupt.  A good course of action is to take a look at things in the home that haven’t been touched in a year, those can often be the first to go.

Get on a payment plan

This means assess all the debt that is owed and create a payment plan to ensure regular payments are made toward the largest (and highest interest rates) debts. For many people this is a challenging task because it means being brutally honest with themselves and facing this problem head on, and when debts are high making a plan can seem a bit overwhelming. However, despite the initial challenge this presents, making a plan can be remarkably liberating and empowering to anybody facing mounting debt – taking control of the problem often leads to tackling the problem. Face this head on and the results are often very positive.

Get some credit counselling

For those who are challenged to get this plan done on their own there are credit counsellor options available that can help people understand their options in a far more detailed and consumable way. Many people lack the skills required to properly plan a strategy to get out of debt, so visiting with a credit counsellor, or taking an initial meeting with a Licenced Insolvency Trustee, will help give people the direction and plan they need take to avoid bankruptcy.


One of he first things people can do is to consolidate their debt so that they are paying the lowest possible interest rate. Credit cards can be the biggest problem in this case, with interest rates that can be so high that getting out of debt is almost an impossibility. By combining all the debts into a single location, with the lowest available interest rate, people will reduce the long term debt that needs to be laid and allow them to focus on a single payment each month.

The above are only a couple of examples that can help people avoid bankruptcy, but by no means are they the only options. Talking to a professional is always a good place to start, we can help develop a plan, talk and negotiate directly with creditors, and help put people back on the right path to financial independence.  For more information please contact me so we can set up a call.