“Me? Bankrupt? Never! That’s the type of thing that only happens to other people!” And yet… At BLT Lapointe & Associates Inc., we’ve seen numerous clients from Montreal and Laval who were forced to declare bankruptcy. Here are three common mistakes that could lead anyone—even you!—to some dire financial straits.
Mistake #1: Overusing credit in any form
Credit is extremely useful for making large purchases like cars, houses, TVs and holidays. The big problem, though, is that consumers often accumulate a mountain of debt without really realizing it—does buy now, pay later ring a bell? It’s only once they’re deep in debt that many people show up at our offices in a panic. To learn more about managing and avoiding unnecessary debt, keep reading our articles or, better yet, make an appointment with one of our advisors.
Mistake #2: Waging war against your ex-spouse during a divorce
Divorce is one of the main causes of bankruptcy in Canada. On average, disputing a divorce in court can cost anywhere between $10,000 and $60,000! That’s why in most cases it’s better to have your proceedings mediated or opt for another amicable solution instead. Try to see past your negative emotions as much as possible and stay objective over the course of your divorce: not only will your wallet thank you for it, but you’ll also save yourself a lot of stress.
Mistake #3: Letting an addiction go untreated
Any form of addiction (gambling, alcohol, drugs, etc.) can easily become a huge financial sinkhole. If you live with an addiction, seek help from a trained professional before you find yourself filing for bankruptcy. You can find a list of resources for dealing with addiction on the Quebec health and social services ministry’s website (in French only).
At BLT Lapointe & Associates Inc., we’re aware of the many factors that could lead our clients to bankruptcy in the Montreal area and beyond: job losses, pay cuts, illnesses, accidents, etc. That said, we believe that it’s always wise to have a strategy in place in case any of these scenarios becomes a reality. For personalized advice, make an appointment with one of our advisors today!