It is rather rare that a person finds himself/herself insolvent overnight. Insolvency is often the result of a long chain of events.

There are advanced warning signs; however many people do not react to these first signs of insolvency in the hope that things will get better with time. In the meantime, credit card balances continue to increase and only the minimum payments are made, savings disappear, RRSP’s are cashed, bills payments are made late, etc. The problems continue and the personal financial situation deteriorates. Unfortunately, at this stage, there may be no other choice but to declare bankruptcy.

If only that person would have consulted a trustee sooner, they could have avoided the feeling of despair and could have been in a position to choose another option.

SOME OF THE ADVANCED WARNING SIGNS

  • Difficulties with the paying of bills on time;
  • The borrowing regularly to make ends meet;
  • The paying only the minimum amount on credit cards;
  • The possessing and using of several credit cards;
  • The using credit cards for essential regular purchases (ex. Groceries);
  • Very little or no savings;
  • The late paying of rent or mortgage; 
  • The threat of or the cutting of public utilities (electricity, telephone, etc.);
  • The receiving of final notices from creditors;
  • The threat of being sued or having property seized;

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