Credit Card Debt

Careful budgeting and controlling expenses can often times get you through temporary cash problems. In really difficulty situations social services agencies or food banks can help in th short term. Once your EI commences budgeting minimum payments on your credit cards may control the problem until regular pay cheques start. Once you are back to work revise your budget to establish if there is sufficient surplus income to pay down the debts over a reasonable period of time. If your income is insufficient to allow you to get back on your feet it may be necessary to consider a statutory remedy such a bankruptcy or a consumer proposal. Which solution is best for you s best determined when you know that you will be steadily employed and what your income and expense are. At that time, it would be wise to consult with a trustee in bankruptcy to put these alternatives into perspective given your specific circumstances at the time.

Often times people find themselves in short term dire financial situations as result of lack of cash flow. The “knee jerk” reaction is often to file an assignment in bankruptcy because of the uncertainty of the immediate future. Advising creditors of the short term problems will often allow them to understand your situation and make allowances that can prevent unnecessary lawsuits and collection practices to let you get back on track.