What are the Causes of Bankruptcy in Canada

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					Before an explanation on the factors of bankruptcy, keep in mind that each year over
100,000 Canadians file for bankruptcy, or file a consumer proposal; so, if you're
reading this document and you have financial troubles, you are not alone.
  The Foremost of Personal Bankruptcy in Canada
  The first reason on the record of main reasons ndividual bankruptcy in Canada is
losing your job, or diminished income in a general situation. Loosing your job or
having your overtime diminished, for example, can make it increasingly hard for you
to make your debt payments.
  Faced with a job loss, amongst one your keys to survival is reducing your
expenditures as swiftly as possible to have more cash and proceed to servicing your
debts. This is, needless to say, simpler when said rather than done, because you can't
quickly minimize your lease or car payments, but keep in mind that decreasing other
expenses, whenever possible, is typically the key to avoiding personal bankruptcy.
  One more leading contributors to individual bankruptcy in Canada is marriage,
separation or divorce. Approximately one third of all folks filing personal bankruptcy
in Canada are either separated or divorced at the time of filing.
  It’s straightforward to see why separation and divorce can lead to financial
complications. As a couple, you only must pay rent once you, you only have one
telephone bill, hydro bill and you share most other expenses. As soon as you’re
separated, you might be each paying your own personal expenses, so your
expenditures are higher but your cash flow stays the same. The rise in main expenses
such as rent or mortgage, plus your own private bills can eventually take a toll on
your financial circumstance.
  If you have cash owed when you separate, your elevated costs may make it difficult
to service the debts.
  The final point on our list of foremost causes of personal bankruptcy in Canada, are
medical difficulties; they usually can and do bring about lots of financial difficulties.
Fortunately, in Canada most of our medical expenses, for instance hospital care, are
covered by the government, unlike the United States where health care expenses for
uninsured Americans are a top cause of personal bankruptcy in America.
  Nevertheless, if you get sick or injured, and you are off work for many months, even
with healthcare insurance your income is reduced, and that makes it much more hard
to service your debts. An illness of substantial seriousness, that can basically take a
person off work can be a difficult situation. Allocated, unpaid sick days can lead to
not being able to make your regular payments for that month plus the additional
medical bills.
  The details mentioned above are the most common reasons for a particular person to
go bankrupt in Canada. When examining your financial situation, keep these aspects
in mind and assure that you include these strategies when you're looking at your
finances. If you follow the specifics mentioned above, chances are, you will be able to
keep your financial records in check which leads to financial stability and security.
  Author Bio: Andre Gabbay & Associés Inc. is a Montreal bankruptcy trustee firm
providing services in bankruptcy consultation, consumer proposals, debt consolidation,
syndic de faillite Montreal and much more.
 If you're looking for bankruptcy services in Montreal or syndic de faillite , contact
Andre Gabbay and Associes today.

				
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posted:2/23/2011
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