The guest post today is from Lana Gilbertson, Trustee in Bankruptcy for Price Waterhouse Coopers.
“As a Trustee in Bankruptcy, I am often asked what are the most common reasons that people find themselves in financial difficulty and, ultimately, filing for bankruptcy. While there are often many reasons for financial difficulty, here is my “top three” list, speaking from my own professional experience:1. Loss of income stemming from job-loss or illness2. Separation, divorce and/or breakdown of significant relationship3. Business failureWith some exceptions, I believe that overspending or spending beyond one’s means is the underlying cause of bankruptcy; however a triggering event, such as job-loss or a divorce, becomes “the straw that breaks the camel’s back.”Bankruptcy is one option available for individuals who have amassed extensive debt obligations that they are unable to repay because of insufficient income and/or a lack of other resources. Bankruptcy isn’t just for the poor, the uneducated, or the sick – people from all walks of life, all professions, and all income levels go bankrupt.If you are like most Canadians, you are currently servicing some form or amount of consumer debt. Ask yourself if you would be able to continue to service the debt if something unexpected were to happen in your life.”