There will be bankruptcies. How can there not be, with work stopped all through the film and theatre worlds.. and with the typical side jobs in service and hospitality spaces limited at best .. how can there not?
There will be hard choices. Homes will be sold. Families will be moved. And yes, bankruptcies will be filed.
There’s a lot of stigma around that word. It is, in some circles, synonymous with failure. This is not true. It, like so many financial tools, is a relief valve for those of you who may be completely buried.
Here are a few things to know about bankruptcies (in Canada):
- They can include credit card, line of credit, tax and some student loan debt (if you’ve been out of school for at least 7 years)
- Once you’ve gone through the process, it drops off your record in 7 to 10 years
- You can talk to a bankruptcy trustee without having to start the process. They can give you more information on how this will look for your specific situation
- Another alternative is a consumer proposal, which means setting up a structured plan but means paying less than you owe. Ask a trustee if that might be better for you (or email me if you have a few questions)
COVID has been a disaster for the arts industry. I don’t know what you’ll have to do, but I want you to have a good idea of the tools at your disposal.