The TransUnion Credit Monitoring Company reports annually on Canadian debt stats and shows how customer debt has altered in the nation. Consumer debt has risen steadily over the previous several years as Canadians cope with the consequences of a slower global economy.
Bankruptcy Statistics New Brunswick
However, a latest study shows that debt rates are beginning to rise faster. The Canadian consumers ‘ average consumer debt increased from approximately $26,000 to approximately $27,500 in the course of 2012, an increase of approximately 6 percent.
Average debt in New Brunswick
Naturally not every province has the same average amount of consumer debt as it is a measurement of the entire nation. Some provinces, like New Brunswick, have a much reduced average amount of consumer debt. At the end of 2012, residents had an average consumer debt of less than $24,500.
It was well below the domestic average of $3,000. However, New Brunswick’s average debt level is still disturbing since in 2012 it increased by more than 7%.
These stats show that many inhabitants in New Brunswick are in risk of becoming more owing than they could reasonably afford to pay every month. You may want to think about a debt solution such as bankruptcy if you live in the province and are in that situation.
What is the eligibility to file for bankruptcy?
Individuals who can not afford to pay their monthly debt are eligible for bankruptcy in New Brunswick, if they are owing $1,000 or more of unsecured debts.
One of the negative factors of bankruptcy is that it negatively affects your loan for up to seven years (and sometimes longer), so that bankruptcy should always be taken as a last resort option after other solutions fail. However, the New Brunswick bankruptcy filing has some beneficial elements, such as:
- remove debt collectors from the back
- remove all uncertain debt and smoothly begin your finances
- provide economic advice throughout the bankruptcy process
- enables you to maintain certain of your possessions
On the other side, bankruptcy is seriously damaging, as your loan has been ruined for at least 7 years. If you submit a debt settlement plan or a consumer proposition in New Brunswick, you will have to abandon a lot of what you own.
Will I lose my home in New Brunswick?
A resident of bankruptcy, New Brunswick and Canadian law, are required to transfer his or her property to the bankruptcy administrator, who then distribute it among creditors to whom the debtor owes cash. In this way, creditors can recover some of their losses at least. However, there are exemptions that enable you to maintain some of your own.
Bankruptcy exemptions from New Brunswick
If you file in the province for bankruptcy, you may maintain:
- Fuel, food and clothing, debt and dependent supplies
- one motor vehicle needed for work up to $6500
- health assistance • Limited stock and six months ‘ worth of feed, and more.
- Professional furniture and appliances valued no longer than $5000
- professional instruments worth a total of up to $6,500.
More information on debt settlement and bankruptcy
Would you like to learn if bankruptcy is your correct decision? Complete the request for debt relief Canada, for more data on bankruptcy, as well as for debt settlement or other choices for debt relief.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.