Will I Still Be Able To Buy Things After I File For Bankruptcy?

2017-07-24   minute read

Eric Findlay


YES!  Of course you can still buy things after you file for bankruptcy; in fact, one of the most attractive benefits of a bankruptcy is that you are free from all of the unsecured debt payments you were previously making and as a result; you will likely have more discretionary spending money compared to before your bankruptcy. For example, someone with a retail store credit card with a balance of $6,000, bank credit card with a balance of $10,000 and an unsecured line of credit with a balance of $20,000 would be paying approximately $700 a month. Assuming minimum payments are equal to 2% of the balance, it would take 112 years to pay off the debts this way! If this same person were free from their debts they would have the $700 to spend or save each month, that’s $8,400 a year that could be used to make real purchases or save for major events like retirement, children’s education, home improvements, vacations and more. Even saving just half of the debt payments, in this case $350 a month, would result in savings of approximately $22,000 in only five years!

Person at a coffee shop holding their cellphone and a credit card

Unfortunately, one of the reasons some people get into trouble with debts is a result of their spending and shopping habits. With consumer spending at record highs, the general mantra of “buy-now, pay-later” makes it all too easy to over-indulge and it doesn’t take long for debts to get out of control. MNP Ltd. helps people to set realistic goals, estimate their expenses and start tracking them, develop budgets and put a plan into action. We will review your money management system, discuss and review healthy spending and shopping habits, review warning signs of financial difficulties and discuss obtaining and using credit in the future.

Below are a few common signs that you may be over spending or making impulse purchases, possibly creating or contributing to debt problems:

  • Do you come home from the mall with items you had no intention of buying?
  • Does your spouse or partner complain that you’re spending too much money?
  • Do you spend a lot of time juggling accounts and bills?
  • Are many of your purchases seldom — or never — worn or used?
  • When your credit card bill arrives, are you surprised to find that you charged more during the month that you thought?
  • Do you feel lost without your credit card?
  • Do you spend money on things that you didn’t realize you needed until you saw them on display in the store?

If you can identify with more than a couple items on the above list, you may want to consider improving your habits, you could consider the following:

  • Don’t buy something just because it’s on sale — it’s only a bargain if you really need it.
  • Shop at second hand or thrift stores whenever possible, especially for clothing.
  • If you need to use credit to pay for something, you should consider the cost of using the credit and then decide if it is still worthwhile.

If you’re starting to feel completely overwhelmed by debt and need direction to a viable debt solution, your local Licensed Insolvency Trustee can meet with you for a free, no-obligation consultation where together, you can review your unique financial situation and find options that best meet your specific needs. Once you have chosen the best route forward, we will work with you to establish a budget that helps to keep you on track for a fresh start and a debt-free future!

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