Early 2013, when all information on Canadian consumer borrowing in 2012 were lastly collected and analyzed, Canadian economists voiced alarm. At the end of 2012, Canada’s average consumer debt level reached a new high of nearly $27,500, signaling Canadians ‘ new willingness to borrow more than they’ve borrowed in recent years. The fact that 2012 saw a rise in the average annual growth rate of consumer debt in Canada after declining since 2009 is particularly disturbing.
Debt growth rate
With the exception of British Columbia, each province in Canada encountered an increase in average debt rates in the final quarter of 2012. Quebec’s growth rate was one of the nation’s lowest, and while Quebec’s average customer debt at the end of 2012 was approximately $7,500 smaller than Canada’s average customer debt, fast development remains worrying.
You may have witnessed a rapid rise in your debt over the previous few years. It may be time to consider bankruptcy if you are no longer willing to create payments on your debt.
How Does Bankruptcy in Quebec work?
Quebec’s bankruptcy is for citizens whose present earnings and assets do not provide them with a realistic manner to pay off their debt. This method is intended to provide inhabitants with a fairly smooth beginning to their finances in order to escape the weight of elevated interest rates, numerous monthly debt payments, debt collector calls, and more.
How to qualify for bankruptcy in Quebec
You can qualify for bankruptcy if you have at least $1,000 in unsecured debt. Residents of Quebec, like residents of the remainder of Canada, through a certified bankruptcy trustee, file for bankruptcy. If you qualify, the trustee establishes a confidence to deposit all of your property. However, there are certain exemptions, including:
- Required household apparel, food and fuel
- economic assistance granted as a consequence of the award
- Required household furniture up to a complete value of $6,000
- all required instruments for the profession
- donated or owned property proclaimed exempt by the giver.
In order that the creditors receive at least some of what they are due, the trustee administrator administers the confidence. The bankruptcy is discharged on average approximately nine months after the original filing if the debtor fulfills its duties.
The pros and cons of Quebec Bankruptcy
Quebec fails may sound hard, but there are clear benefits to the method. Eliminating your debt lifts your shoulders with a heavy burden. In addition, you will also need to take a compulsory economic education course that will assist you better handle your finances in the future and prevent bankruptcy again.
Quebec residents should also be aware of the bankruptcy disadvantages. During the bankruptcy process, citizens of Quebec will be unable to sit on some business and charitable boards. The worst of all is that your credit has been lost for at least seven years in bankruptcy. During that era, the few creditors willing to extend your loan will pay you very elevated interest rates.
Fill out the debt relief form for more information. Determine whether bankrupting is the right solution for you or you will be better served by other debt relief options.
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.