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"I had a small business that needed some time to get our cash flows in order. Filing a Proposal gave us the time we needed. "
~Byron - Sidney


"I was so relieved to learn that I could go bankrupt, but still be able to keep my car. "
~Scott - North Saanich


2014-08-25 16:19:14

The Importance of Learning Financial Management After Your Insolvency

Some people find themselves in financial trouble because of an emergency they weren’t prepared for, such as getting too sick to work, or having large medical bills for a family member, however, many other people find themselves in financial trouble simply because they spend more than they earn and have poor money management skills.

If you file a consumer proposal or assign into bankruptcy, learning better money management skills will become a priority.  A consumer proposal depends on you making the agreed upon payments, so you have to budget to ensure that you can make them and during your bankruptcy you have to turn over half of your calculated surplus income to your trustee, so you need to make sure you aren’t accidentally spending it.

There is a mandatory counselling program in place that is mandated by the Office of the Superintendent of Bankruptcy (OSB).  This program is meant to help you identify places you have previously struggled and provide you with new tools for better money management. One of the key focuses of this counselling will often be to help you build and work within a budget.

Ultimately though learning to manage your finances better is down to you.  Your Trustee is not responsible for chasing you down or ensuring you make payments on time.  Keeping up with your responsibilities under the Bankruptcy and Insolvency Act  is a requirement for you to be discharged.  Your insolvency will stay on your credit report for 6 years after the date of discharge, so getting discharged as soon as possible should be a priority.