Nova Scotia Bankruptcy
If you have been following the progress of the economy across all countries and territory, you must not be anticipating the fact that Canada has a significant increase in terms of consumer debt. Everywhere in the country, Canadians convey the utmost desire to get installment loans or new car loans. Although the average estimate of these loans did not relinquish an impact in 2012, granted that the debt in place of these loans rises to nearly 9%; a statistical increase that may imply of residents unable to pay their loans on time, or even met the required minimum payments for their debts. This set up can boil to the possible filing of bankruptcy.
At present, Nova Scotia contributes to a large number of bankruptcies and consumer proposal ratio by 10, 000 people in Canada. In totality, provincial residents deemed filing for bankruptcy as their ray of hope to be free from their strife. However, before going into the process, Nova Scotia residents should arrive into a sound judgment on whats the best debt solution.
Nova Scotia Bankruptcy Basics
Although Nova Scotia is entitled to establish its bankruptcy exclusion frontiers, the federal government sets these statutory arrangements in the province. Furthermore, if you haven’t set your mind on considering the other debt relief solutions available, keep in mind that bankruptcy should only be your last resort. While bankruptcy might be time-consuming and costly, it allows you to get back on your feet. It eliminates unsecured debts that can help you restore your financial freedom.
To qualify for bankruptcy, you must owe not lesser than $1,000 of unsecured debt. You can file for bankruptcy via a licensed bankruptcy trustee that will oversee your finances. Your trustee will set up a trust where your property will be deposited. This way, lenders can gain a few from what you owe as long as you still own some substantial assets.
Moreover, not all will be taken from you as there are exemptions of what can be disposed of. This means, if you file for bankruptcy, you won’t come out emptied and scarce. After a nine-month duration, you will be discharged in compliance with your duties under the bankruptcy agreement. This will entail eradicating your unsecured debts.
Pros and Cons of a Nova Scotia Bankruptcy
Prior to filing bankruptcy in Nova Scotia, one must need to acknowledge the pros and cons since the consequences of filing for bankruptcy are never easy compared to a consumer proposal, debt settlement, or the other debt solutions.
Pros
- legally preventing creditors in collecting debts
- dispensation of student loans if you file at least seven years after you ceased as a student
- financial counseling to avoid getting you on the same spot of a bankruptcy situation
Cons
- Abstinence to possess any corporate board statuses during the bankruptcy process
- Damages your credit standing for seven years or more, resulting in difficulty in getting a loan
- exemption sums that require you to supply greatly of whatever you have; primary exemptions in Nova Scotia include $6,500 for a motor vehicle needed for trade or $3,000 if for personal usage, $1,000 for occupational tools, and essential food and clothing
Bankruptcy or Debt Settlement
Now, that you know that bankruptcy should only be your last resort, you should then consider other debt solutions beforehand. Explore your options and find out if you QUALIFY for a consumer proposal.
