5 Signs You May Be Heading Toward Bankruptcy

Financial difficulty and bankruptcy are taboo subjects for many people in Ottawa and throughout Canada. Many would rather sweep their financial issues under the rug, believing that somehow, magically, the problem will take care of itself.

And then one day, they wake up and their situation is so dire that they are forced to make drastic decisions—like filing for bankruptcy in Ottawa.

Let’s take a look at five signs you may be heading toward bankruptcy in Ottawa:

• Your financial stress is throwing your personal life into disarray. And you’re not alone! Did you know that 60% of Canadians say they lose sleep over their perceived financial problems? And over 70% believe financial stress affects their health? That’s many people with financial troubles! Financial difficulty can also make you irritable at home and less sociable as you stop going out for fear of not being able to pay your way or having your credit cards denied. You may also have stopped answering your phone and opening your mail to avoid having to deal with collection agencies.

• You’re barely making your minimum credit card payments. This is a sure sign you’re nearing the end of your financial tether. Only being able to make minimum payments on your credit card bills and lines of credit means you are likely paying a lot of interest and barely making a dent in your debt capital. If your financial difficulties make you miss payments, then you are also incurring hefty late penalties and a decreasing credit score.

• You’re putting your groceries on plastic. When you are obliged to run your household on credit, then it means you’re spending more than you make. This is a sure-fire dead end.

• You have no savings. A household without any savings is just a small emergency away from serious financial trouble. Most Canadians feel that having a line of credit or space on their credit card is cushion enough in the event of an emergency. But an emergency expense on credit has been the downfall of many a household. Your best safety net is having one to three months’ worth of savings in the bank.

• You’re borrowing money to make your minimum payments. These types of loans are often high-interest and become increasingly harder to pay back as you sink further in debt each month.

Are you concerned about your financial situation or considering filing for bankruptcy in Ottawa? Contact us at Bernier & Associates! As specialists in bankruptcy and insolvency in Ottawa, we're here to help any way we can.

Contact us today for a free evaluation!