Illness or Disability and Debt
by Gene Frendo
It can be hard to put money aside just in case of a serious illness or disability when you’re too busy getting on with life and getting by – especially if you’re usually fit and healthy, but even if you’re not. We very rarely plan for unpredictable things like heart attacks or accidents. But it’s the unpredictability of life that – in an instant – can send you to a place where money and debt worries are now added to the stress of adjusting to any lifestyle changes brought on by the illness or disability.
Employment Insurance can help to ease the financial burden if you are affected by illness or short-term disability, although the benefits are limited to only a percentage of your usual income.
Canada Pension Plan Disability Benefits or private health insurance can also help a person with a long-term disability or illness, but again, the benefits can be limited and establishing a claim can take time.
So what can be done in the meantime if you couldn’t have planned or just didn’t plan for a long-term illness or disability but now find yourself in that very situation – with growing debts and no way to pay them?
Try negotiating with your creditors - especially if you only have a few. Negotiating with your creditors by explaining your situation and what you can and can’t do should at least be tried. Depending on your circumstances, taking the initiative by contacting your creditors before they are forced to contact you can sometimes be effective.
While nobody wants to depend on family or friends, financially, when illness or disability strikes, sometimes we may have no other choice than to approach those closest to us for some financial help.
Explore your options with Frendo and Partners.
A third option is to talk to a Licensed Insolvency Trustee. A Trustee can explain your options and assist you in putting together a plan to tackle your debt in a way that makes the most sense given your financial situation. Bankruptcy is an option, but it is not your only option. If resources allow, you may be able to negotiate with your creditors through a formal process called a consumer proposal which allows for an individual to avoid bankruptcy but still deal with their reduced income and overwhelming debt in a manageable way.
To schedule a free, no-obligation consultation please call: 289-273-2841 or email: gene@frendoandpartners.com.