Many Canadians may live in a false debt reality caused by pandemic income support and loan deferrals
A. Farber & Partners encourages Canadians to take a realistic look at their current debt situation and take control today before it begins to control it
TORONTO, October 5, 2021 / CNW / – According to A. Farber & Partners, a licensed bankruptcy administrator, some Canadians may have been lulled into a false sense of financial security over the past 18 months due to COVID-related aid programs. Canadians, who otherwise may have faced financial bankruptcy prior to the pandemic, were now in a position where they could manage their finances and pay monthly bills. But when these bailouts are to be phased out, many of these Canadians will return to their true debt realities and will likely struggle to keep up with their monthly bills and rising debts.
“The first step in Canadians’s own financial future is to seek help. But some delay getting help because of shame, not fully managing their debt, or rationalizing work with Canadians to help them get through their financial crisis through our proven debt solutions. We empathize with Canadians and show them that their debt is a situation, not who they are. Most of them tell us that they wish they had started the process years earlier as they are able to regain their confidence and be optimistic about their financial future once they get started, “says Shane Pennell, Chairman of the Board of A. Farber & Partners.
Last year, the Office of the Superintendent of Bankruptcy Canada (OSB) reported the largest annual decline in Canadian consumer and corporate bankruptcy filings ever. The decline coincided with the COVID-19 outbreak and emergency response measures. And the trend continued in the first half of 2021, in which the number of insolvency registrations also fell significantly.
Pennell adds, “Canadians are not filing the expected bankruptcy during the pandemic. We attribute the decline to the income support and loan deferral programs that allowed these already overworked and scarce Canadians to temporarily get along and make their payments every month.But it has also created a false debt reality for many that allows them to do the inevitable procrastinate in relation to their debts. If income support wears off, we expect a potential surge in Canadians at risk of bankruptcy in 2022. “
With the number of bankruptcy filings expected to increase in the next 6-12 months, A. Farber & Partners has expanded its national reach to work with more Canadians in one of their greatest financial emergencies. It recently opened new offices in three new provinces in Manitoba, Saskatchewan, and Nova Scotia. It currently has nearly 100 offices and over 250 employees.
A. Farber & Partners offers a dedicated team of licensed bankruptcy administrators who work with Canadians to find a viable debt solution that suits their specific financial situation, e.g. B. a consumer offer. A consumer proposal is a legally binding process that can only be administered by a licensed bankruptcy administrator, the only government regulated debtor professionals in Canada. As a debt solution, a consumer proposal is to pay creditors a percentage of the debt due to them without interest, and allows Canadians to regain control of their finances and get back on their feet faster.
The majority of Canadians working with A. Farber & Partners choose a consumer proposition because of the many benefits it offers, including paying back only a portion of their debts through a manageable monthly payment based on what they can afford . It also allows them to feel better about paying back a percentage of their debt to creditors and has less of an impact on their creditworthiness in the future. So over time, as Canadians rebuild their finances, they will be eligible for such lifestyle staples as car loans.
A. Farber & Partners also offers long-term educational and advisory services. These education and counseling services are designed to help Canadians get back on track and better understand debt, including the difference between good and bad debt and how to use it effectively in order to build a healthier relationship with their finances in the future.
About A. Farber & Partner
For more than 40 years, the A. Farber & Partners team of committed licensed insolvency administrators (LIT) has worked with over 100,000 individuals and companies in Canada to solve their debt problems. As a trusted financial partner, A. Farber & Partners understands the toll debts that Canadians can have, both financially and spiritually. With our extensive financial expertise and our long-term educational and advisory services, we enable Canadians to get their debts under control, regain their self-confidence and shape their own financial future. A. Farber & Partners has nearly 100 offices and over 250 employees throughout Canada. www.afarber.com
SOURCE A. Farber & Partner
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