The steps to follow during insolvency proceedings

insolvency proceedings stepsWhen dealing with insolvency proceedings, it can sometimes be difficult to see clearly. The best advice an insolvency advisor could give you is not to give up.

There are many ways to get out of a precarious financial situation. Sometimes you just have to readjust and find adequate solutions to the problems that are causing your situation.

On the other hand, if you are mired in debt, insolvency proceedings may be your only solution. If this is the case, a financial services advisor or an authorized trustee can inform you about anything related to bankruptcy and insolvency law. Our team is able to give you all the information you need.

Nevertheless, to determine if insolvency proceedings are right for you, discover the judicious advice of our financial recovery experts.

1. Analyze your behavior in the face of money

Before starting insolvency proceedings, analyze the situation you find yourself in. Would it be possible for you to change your situation simply by changing your habits? Here are some signs to detect quickly to avoid bankruptcy:

  • You have more expenses than your budget allows, or you can not pay your credit card payments every month;
  • Your credit card is no longer convenient, but necessary;
  • You pay only the minimum amount and do not reduce your debt;
  • You are being harassed by your creditors for payments you can not afford, or have to deal with a collection agency;
  • Public services are cut off for lack of payments;

If you recognize yourself in one of these situations, don’t panic, there are solutions available to you.

2. Get help from an Insolvency Advisor

When you have discovered your risky behaviors, it’s time to seek help from a professional. An insolvency advisor will guide you and help you determine the ideal solution to recover financially. Don’t declare bankruptcy unnecessarily; it is possible many other options are available to you, such as debt consolidation or the consumer proposal.

These options are only available to you through an authorized insolvency trustee. They are the only professionals authorized to administer insolvency proceedings, including bankruptcy and the consumer proposal.

In addition, by seeking help from a licensed insolvency trustee, you put a definitive brake on the harassment of your creditors. It is your trustee who represents you and manages your file as well as your creditors. Any legal proceedings against you will, therefore, be suspended during the negotiations.

3. Always be honest with your trustee

Provide all relevant information about your file to your trustee. This is the best way to put the odds on your side.

Understand that bankruptcy is not your only option with respect to insolvency proceedings, but only an experienced financial advisor or licensed trustee will be able to tell you the ideal solution according to your file. There are many benefits to avoiding bankruptcy. If it’s possible for you through a consumer proposal or debt consolidation, you should always choose this option.

For any questions regarding insolvency proceedings, contact us. An experienced member of our team will gladly take your call.

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