In our experience at Morgan & Partners Inc., many people harbour a lot of fear about the possibility of becoming insolvent. This anxiety can make people more prone to believing false information, which in turn only makes them more anxious. Our team is here to correct some of the worst of these myths to help you take a more objective view of the situation.
Keep reading to learn the truth behind some of the most pernicious myths about insolvency.
- Myth: Insolvency will make you lose everything. – Many people worry financial insolvency will cause them to lose all their assets, including their home, vehicle, and more. In reality, Canada’s insolvency laws protect certain essential assets, including homes under certain circumstances, cars, work tools, clothing, and more. In other words, you will get to keep these assets, which will make it easier for you to rebuild.
- Myth: Becoming insolvent means you are stupid. – There are many reasons why an individual or business might become financially insolvent, and not all of them are the result of poor decisions or planning. Many of the clients our team has helped are facing insolvency due to circumstances out of their control, such as a severe illness, sudden job loss, natural disaster, or similar hardship. Our team will never judge you for the position you are in, but instead will work with you to find the solutions you need that fit your circumstances.
- Myth: Bankruptcy is the only way out. – If you are facing insolvency, you might think your only option is to declare bankruptcy, but this is not the case. Our team can offer other solutions to your financial troubles, and you can count on us to help you find the best plan for your situation.