It’s always nice to receive a lot of excellent news with all the world financial issues of latest years. Fortunately, by looking at the statistics released by the Newfoundland and Labrador government, there is excellent news to be discovered.
Newfoundland Bankruptcy statistics
Since 2009, the province’s consumer bankruptcy has been steadily declining from just over 2,500 in 2009 to about 1,600 in 2012. This decrease is a clear sign that customers today have an easier time than they did a couple of years ago to pay their debts.
There are still reasons to worry about the province’s debt, however. Although a decrease in the amount of bankruptcy discharges was disclosed by the government, loan reporting agency TransUnion reported that Newfoundland and Labrador experienced one of Canada’s biggest rises in its average consumer debt.
Debt growth in 2012 was almost 8 percent year-over-year, which may imply that more Newfoundland citizens are living beyond their means.
Perhaps the rise in your debt level has helped boost consumer debt rates in 2012 generally. You need the assistance of the correct debt solution if you have problems paying your bills on time. If your economic condition is hopeless, your only choice may be the bankruptcy in Newfoundland.
Overview of Newfoundland Bankruptcy
Personal bankruptcy is a debt solution that is intended to reduce and clean up your customer debts. Following failure of all other debt alternatives, Newfoundland and Labrador citizens can file for bankruptcy by way of a certified trustee if they have unsecured liabilities totalling at least $1,000.
Once citizens of Newfoundland have filed for bankruptcy, they should educate the trustee about their assets and even hand over some of their property. The bankruptcy trustee is responsible for managing these assets and paying creditors. In this manner, at least some of the debts to the debtor are paid back to creditors.
While there are no significant problems, after nine months most bankruptcies are released. The remaining unsecured debts of the debtor were eliminated at that point, and the financial situation of the borrower was essentially over.
Newfoundland’s Bankruptcy Pros and Cons
Bankruptcy has its share of inconveniences, of course. For at least seven years those filing bankruptcy ruin their credit. During this time most creditors will not even consider extending a loan to you, and a fresh credit card will be impossible for you. Any loan you receive comes at an outrageous rate of interest.
Also, while you are authorized to maintain at least some of your assets when a bankruptcy is discharged, some of your estate will typically be surrendered.
Exemptions are however available. For instance, medical devices and food can be maintained. The basic household furniture exemption is 4,000 dollars. So you hold the amount of furniture that you want to get up to $4,000 in total. Once this limit has been reached, the trustee shall make all other provisions or agreements. The motor car exemption is $2,000.
However, bankruptcy is a feasible option when a smooth economic beginning is necessary. In bankruptcy, you will give economic advising to consumers to know the budget and do something other than to get into trouble again. It will also be forbidden for debt collectors to call you, another plus.
Canada’s Alternative Debt Solutions
Find out more about bankruptcy and other debt alternatives such as consumer proposals and debt settlement, that can help you with your loans without ruining. For more data on your alternatives, complete our online calculator.
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.