There are many different triggering events that cause people to file a bankruptcy or a proposal, but job loss is a leading factor. Job loss may mean a temporary interruption in cash flow or a permanent downturn in personal income. In rare cases job loss may be a step towards career advancement and although there may an income interruption it isn’t a big deal.
Job loss for most ordinary working folk can be catastrophic, it not only impacts finances but also destabilizes family relationships. One need only think of the recently announced GM Oshawa layoffs, semiskilled labourers who have been making very high wages will be looking for work next year at wage levels that may be less than half of what they have been accustomed to.
It has been said that many people are just one or two pay cheques away from bankruptcy, and with a job loss that may certainly be the case. Many questions arise as incomes change and the answers can be confusing. Do you have enough savings to bridge the gap between one job and another? Should you cash out RSPs and insurance policies? We have the answers. Did you know that many assets are exempt from seizure in a bankruptcy or a proposal?
It doesn’t always make sense to self-liquidate following a job loss, but that is most people’s first reaction. A job loss may trigger lifestyle change(s) but you don’t need to sell the farm. Come in for a conversation about your situation, initial consultations are always free, and we will provide you with the information you need before you burn up all your savings. Reach us through the contact us page, or call us today 519-646-2222