Whether it’s out of necessity or not, relying too much on consumer loans and credit cards can put you in a situation where you can’t afford to pay the minimum on all your debt anymore. At that stage, you need to get assistance from one of Canadians ‘ many distinct debt alternatives, including debt settlement, consumer proposal, or bankruptcy.
Nunavut bankruptcy statistics
Insolvency is sometimes the only viable solution, and residents of Nunavut take advantage of it, albeit less often than the rest of the country. For example, in 2011, the average bankruptcy rate for residents of Nunavut was 0.4 per 1,000 people, which according to the Office of the Superintendent of Bankruptcy Canada was the lowest rate in the country. That’s encouraging, but it doesn’t say the entire tale about the rate of bankruptcy in the territory.
Residents of Nunavut lodged 0.2 insolvencies per 1,000 individuals in 2010. In the course of one year, the rate of bankruptcy in the land increased. In 2011, more people were struggling to pay their bills than in 2010.
The most significant problem is deciding whether bankruptcy is the correct solution for you if you are buried in debt. You need a fundamental knowledge of what it means to file for bankruptcy in Nunavut to make this choice.
How to qualify for bankruptcy
If they owe an unsecured debt to at least $1,000, residents are qualified to file for bankruptcy. Residents should be able to prove that their debt can’t be paid and submit bankruptcy claims through the certified bankruptcy trustee.
Process of Nunavut bankruptcy
The trustee establishes a confidence that involves your property when you file for bankruptcy. Creditors are entitled to certain protection in the process of bankruptcy and to at least recover some of what you bought. At the end of nine months (usually) your property will be released if you follow the procedure. You will be paid by the truster for your creditors. At the time of bankruptcy, citizens of Nunavut have deleted their unsecured debts, thus efficiently restarting their economic lives.
Advantages and Disadvantages of Bankruptcy in Nunavut
Filing for bankruptcy in Nunavut efficiently makes you toxic to creditors for about seven years after their release from bankruptcy. During this moment, you will discover it almost impossible to obtain fresh low-interest loans and loan cards.
Will I lose my home in Bankruptcy?
You should also be aware that while bankruptcy protects some of your assets, they are not all protected and those protected are relatively small. For example, your residence is protected by only $3,000, and you have to hand over all equity that exceeds your home.
On the other side, there are some major benefits to bankruptcy if you are in a hopeless economic position. You will not be called by debt collectors, and you will receive free financial advice to assist you better handle your funds.
Before you consider alternatives that are less damaging to your credit, please do not decide that bankruptcy is your only option to get out of debt. Understanding these alternatives is useful, and you can access some excellent data to get began by filling out our online debt 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.