Have you ever noticed that millionaires and billionaires seem to play by different rules than other people? That’s not to say they have different laws to follow. Instead, they seem to make money even by going bankrupt. If you look at the financial histories of some of the richest people in Canada, you’ll find a history of failed businesses and bankruptcy claims. In fact, some of the largest corporations in North America went bankrupt recently, and they’re still operating with very high-profit margins. How can that be?
Bankruptcy has assumed a sort of stigma for middle-class individuals that is undeserved. Debt solutions come in many different forms, but finding the right one for you depends on understanding bankruptcy.
What is Bankruptcy?
Removing the stigma of bankruptcy begins with understanding the concept. Bankruptcy is, in its simplest form, stating to your creditors that you are unable to pay them the money they believe you owe. People and organizations go bankrupt for many of different reasons, many of which are not actually the person’s fault. If you run a business, you often operate based on deficit spending, which is spending more money than you actually earn. Many private individuals and organizations operate deficits, because they believe they will be able to pay off their debts as they make more money. Most people who have reliable jobs or steady income flows tend to have no problems with this. However, if market forces cause you to experience a shortfall in your income, you might find yourself unable to pay back your obligations. If this persists for too long, you might become permanently unable to pay those debts off. That is when you need to find debt solutions.
You Actually Have the Upper Hand
It might seem like declaring bankruptcy is stating some kind of failure, but that’s not the case. Debt solutions in Saint John NB offer you the opportunity meet with your creditors and work out a mutually beneficial plan. Since you have already incurred the debts, your creditors need you to pay them back, so they can continue to operate their businesses efficiently. They are the ones who need something from you, which is why, in a manner of speaking, you have the upper hand in these negotiations.
When you consult with a bankruptcy trustee, you’ll find that you actually have more options than you might have originally thought. Depending on your circumstances, you can consolidate your loans, settle for a lower debt, or change your repayment schedule. Determining which is right for you is the first job of a trustee. If you think that you need one of these services, you should call a trustee in your area for a consultation. With proper help, you can actually come back stronger from bankruptcy. For more information visit Powell Associates Ltd.