Avoid Bankruptcy in Canada

Before you decide to file for bankruptcy in Canada, STOP! Ask yourself this important question: “Can I avoid bankruptcy?”

Bankruptcy in Canada is a last resort, something you do when you have no other options. To avoid bankruptcy, you must evaluate all of your other options first, and if no other option will work for you then, and only then, should you consider bankruptcy.

But how do you do that? How do you know if you can avoid bankruptcy? You need to get our three pieces of paper, and make three lists:

1 Make a list of all of the money that comes in each month, and all of the money that goes out. Yes, make a budget before you consider bankruptcy.

2 Make a list of your assets (everything valuable that you own).

3 Make a list of your debts (everyone you owe money to). Obviously your debts are what you want to eliminate through bankruptcy, so a complete list is important.

With these three lists, you can determine if you are insolvent, which will help you decide if any of these options would help you avoid bankruptcy. Your alternatives to bankruptcy in Canada are:

Only if these options are not possible should you then make the decision to file for bankruptcy in Canada.

Read more in our article on alternatives to bankruptcy in Canada.

Options to Avoid Bankruptcy in Canada:

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