Check out our new documentary DEBTASIZED.

Check out our new documentary DEBTASIZED.

Is Bankruptcy the Right Thing to Do?

Is Bankruptcy the Right Thing to Do?

The real question that everyone wants us to answer when they come in for a consultation is “how do I know if bankruptcy is the right thing for me to do?” Deciding that you need to go bankrupt is not an easy choice, even if it’s the right one financially, we understand that.

Our job is not to sell you a bankruptcy. Our role as a Licensed Insolvency Trustee is to review your situation with you, conduct a debt assessment and present you with various options, so you can decide if bankruptcy is the right choice.  

Here’s how the decision making process works.

Attend a Debt Assessment

To begin, when we meet, we will always ask you these three basic questions:

  1. Who do you owe money to?
  2. What do you own (a car? RRSP? House?)
  3. How much do you earn each month and what do you spend it on? In other words, what does your budget look like?

During our meeting we will probably ask you many other questions as well, because we want to understand your situation before recommending a solution. Are you facing a wage garnishment or any other legal matter that would cause some urgency? What is your family situation — if you are married and have children this has an impact on the financial calculations we would make in determining how much you would have to pay in a bankruptcy or consumer proposal?

Reviewing All Your Bankruptcy Alternatives

As Licensed Insolvency Trustees, we are required by law when you come in for an assessment to make sure you understand the impact of all possible solutions, including any alternatives to bankruptcy.  There is no hard sell. We don’t push the idea of filing bankruptcy and no-one is asked to make a decision the same day. 

Our role is to talk about your situation and give you options. We will:

  1. Review your budget to see what you can afford.
  2. Explore your capacity to qualify for a debt consolidation loan.
  3. Cost out if your debts can be repaid through a debt management plan.
  4. Compare these options with the cost of a consumer proposal.
  5. Only if all of these options are not suitable for your unique situation will we recommend that you explore the bankruptcy option.

In case you still think that when you contact us you will have to file bankruptcy that first day, here are some interesting statistics about people we have helped:

  • 4 out of 5 people who contact us do not need to use our services. Many are guided to another solution to deal with their debts that is more appropriate.
  • 3 out of 4 people who do file take two weeks or longer to file. Part of this time is to ensure that all the necessary paperwork is complete but most is to provide them with time to be comfortable that the decision is the right one.

We want to address all your questions about bankruptcy. We will tell you how the bankruptcy process works and what may happen if you file bankruptcy. We’ll explain if filing bankruptcy will affect your home or mortgage and how most people can keep a car in a bankruptcy.

Bankruptcy Is a Fresh Start

The concept behind bankruptcy is that you need relief from your debts. For whatever reason (and there are many reasons people file bankruptcy) you have accumulated more debt than you can handle and you need to find a way out. 


  • Your debt payments are taking up too much of your take home pay;
  • You are falling behind on your bill payments;
  • The phone is ringing with calls from collection agencies;
  • You are afraid to open your mail;
  • The stress from all of these things already has you feeling pretty bad about yourself and your situation;

…then bankruptcy may be the fresh start you need.

Call us and let’s get started. We can help you eliminate your debt.

Similar Posts:

  1. What Do I Need To Disclose To My Bankruptcy Trustee?
  2. What happens at my first meeting with Hoyes Michalos?
  3. How Much Debt Does it Take to File Bankruptcy in Canada?
  4. Can You File A Consumer Proposal Twice?
  5. Can I File Bankruptcy On My Own?

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