This is the second in a five-part blog series about what Consumer Proposals are, how the process works, and whether they might be the right solution for you to get permanent relief from your unsecured debt.

Money and possessions are how we make our way in this world. And when someone comes looking to take those things away, that threatens our way of life. Naturally, our only options are to fight, flee or freeze.

The Canadian economy has enjoyed more than 10 years of robust growth, yet only around half of Canadians are in good financial shape — and the COVID-19 pandemic certainly hasn’t improved matters.

Purchasing decisions used to be easy for most households. Until the early 1950s, people mostly bought what they needed and paid for their purchases with cash. Wants were few and luxury items for the most part beyond reach. Fast-forward 70 years and it’s not surprising that “I see, I want, I buy” has become the guiding mantra for so many consumers and that consumer debt keeps breaking one record after another.

Are you in a situation where you’ve fallen behind on your debts and now the account is in collections? As if the stress of your mounting bills wasn’t bad enough, now you’re worried there’s a collections agent lurking behind every phone call, every mail delivery, and every email. It doesn’t take long for the fear and anxiety to consume every waking moment of your life.

Just the mere thought of financial planning is enough to send many people into a tailspin. But it can be a truly empowering exercise. You just have to break it down into small enough steps so it’s not so overwhelming.

Consumer Proposals and Bankruptcies are government legislated insolvency options that can provide relief from serious debt problems. Both solutions can only be administered by a Licensed Insolvency Trustee. In addition, both solutions provide a legal stay of proceedings which require creditors to discontinue harassing collection calls, wages garnishments and other legal proceedings.

Bad financial habits are easy to fall into and impact wealthy households, low income individuals, the highly educated and uneducated alike. They can cause all sorts of personal and financial difficulties — but it’s often not until they’ve done significant damage that people begin to recognize how their bad financial habits are sapping their wealth and holding them back.

Despite the fearless efforts of previous generations there remains a pronounced gender wealth gap in Canada, along with persistent stereotypes and stigmas about how women manage their money. In celebration of International Women’s Day 2021, and their theme #choosetochallenge we’re challenging preconceptions around women and debt — and empowering women to take responsibility for their own financial success and debt freedom.

Fear of losing needed or cherished assets is one of the most common reasons why people are hesitant to file a Bankruptcy. And a motor vehicle is understandably one of the assets potential bankrupts are most fearful of losing. Unfortunately, there isn’t a universally black or white answer to this question. Here’s why.