“But I always had great credit… Until I got sick.” is a refrain I hear repeatedly in my practice as a debt manager for A.Farber & Partners Inc. Unexpected illness strikes, a tragic accident takes a father from his family, or an aging parent passes away overseas (resulting in sizable debt due to the funeral arrangements). Other scenarios might include a downturn in the economy that results in job layoffs from the local factory, or even an ex-boyfriend or girl-friend who racked up the person’s debt and then disappeared. All of these scenarios are unexpected occurrences that often have a dramatic impact on the lives of those who suffer as a result.
I call it the “two by four effect”, because to those who have to endure such painful situations, it feels quite literally like they’ve been hit on the back of the head by a two by four wooden beam.
Luckily, the Bankruptcy And Insolvency Act (also known as the BIA) was molded around the concept of the “honest debtor”: the person who, through no real fault of their own, ends up having to deal with a debilitating chronic illness, a tragic accident, the unexpected death of a family member, the fraudulent actions of a loved one or unanticipated career difficulties.
The Bankruptcy and Insolvency Act is a safety net for us all, when these types of situations tackle us in life
The BIA is there to help us, to protect us from our creditors and to allow us a fresh start. In fact, it is a fundamental purpose of the Bankruptcy and Insolvency Act to provide for the financial rehabilitation of insolvent persons.
To quote directly from the Bankruptcy Insolvency Act:
“The Act permits an honest debtor, who has been unfortunate, to secure a discharge so that he or she can make a fresh start, and resume his or her place in the business community.”
The Bankruptcy Insolvency Act provides you, as a consumer debtor, relief from the “crushing burden” of your debts. It is designed to provide you with the ability to start over again financially, with fresh credit and additional knowledge (as provided to you by licensed credit counselors during the insolvency process), so you can manage your new debt responsibly and capably, despite what the world throws at you.
So, if you’ve been dealing with any of the scenarios I’ve illustrated above or have just gotten in over your head with your lines of credit, department store and bank credit cards, overdraft interest or Revenue Canada debt, contact us so we can assist you by putting up a wall of legislation between you and your creditors – and protect you, once and for all, from the debt that keeps you up all night. We’re here to help.
Thinking about filing a bankruptcy? Or not sure what to do next?
Please contact A. Farber & partners for a free, non-obligation debt relief consultation, and we’ll be happy to assist.