Some nice news on the Canadians and consumer debt existed at the start of 2013. The Northwest Territories and the rest of the provinces and territories of Canada continue to decline in their crime rates. In some instances, they even decline.
Across the nation, there was less than half a percent crime rate for credit cards. Investment loans had the highest rate of delinquency of any type of consumer debt, but even that rate was only below 1.2%. Because consumer debt is one of the major causes of economic difficulties for Canadians, these small levels of crime show that most people pay their debts on a timely basis.
However, the fact that the crime rates exist at all shows that some residents can not fulfill their debt commitments on a monthly basis. Maybe you are in this difficulty. If you live in the NWT, help will be provided. There are a number of debt alternatives. These are programs for settling debts and loans for debt consolidation.
You might, however, want to look at bankruptcy if you are really in a financial state, if you file for bankruptcy and if your debt is not secured, you get a smooth beginning on your finances.
How do I file for NWT Bankruptcy?
It’s not hard to file for NWT bankruptcy. You can contact a certified bankruptcy trustee and file for bankruptcy protection, if you owe at least $1,000 in consumer debts. Evidence that you can not satisfy your monthly debt commitments is all you need to do.
NWT bankruptcy process
When you file for bankruptcy, you trust your creditors to pay for your bankruptcy. Although you won’t pay the full amount you owe, you’ll still have to give your bankruptcy creditors something. NWT bankruptcy protection residents hand over the sale of assets and the income is distributed to creditors. Sometimes the assets are handed over without being sold to your creditors.
You don’t have to give up everything you own when you are in the bankruptcy process. These exemptions are provided for under the NWT bankruptcy rules:
- home equity — $3,000 food
- enough to feed you, your family and for one year
- medical devices — all of which is home equipment and products — $500
- motor car equity — $600
All your registered pension savings plans, as in other provinces and territories, are exempt, but in the 12 months before bankruptcy is filed you should give to the trustees what you contributed to them.
NWT’s Key Advantages and Disadvantages
Other bankruptcy benefits include the removal of your unsecured debts:
- Financial counseling
- Free up earlier used cash for debt repayment
- Financial debt collector contacts
There is also a significant disadvantage of bankruptcy to give up some of your estate to your fault. Your credit is approximately destroyed for seven years after release, if you claim bankruptcy. You won’t be able to receive low interest loans and credit cards, and most creditors won’t even give you high-interest loans.
Alternative debt solutions
The response is almost always yes and you can immediately begin to explore your alternatives, such as credit counselling or debt consolidation by completing the online form on contact us for free advice.
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.