Economic growth is usually regarded in a favorable light, with excellent reason. An increasing economy generates employment, provides more buying power to individuals, and raises the average living standard. In latest years, the financial boom in Saskatchewan has produced all these advantages for most provincial inhabitants.
There are indicators, however, that could cause alarm in the province as well. This economic growth made residents of Saskatchewan much less hesitant to accept new consumer debt. The number of consumers in Saskatchewan who reported an increase in their debt levels was higher than the number who reported a decline from about 2005–2009.
The Saskatchewan Chamber of Commerce and the Saskatchewan Certified General Accounts Association report that this debt increase was not primarily driven by the acquisition of secured debts and assets such as homes and other properties. Consumer spending has instead led to this rapid increase in debt levels.
When consumer spending drives debt acquisition, individuals are at a higher danger of getting into a position where elevated interest rates render paying all their creditors impossible. It’s time to look for a debt solution when this occurs. It is time to declare bankruptcy when all other debt alternatives fail.
Bankruptcy process in Saskatchewan
Bankruptcy is a unique method intended to assist those with so much debt that they can never fully pay it. This does not imply that to qualify for bankruptcy, the complete debt amount one carries must be extremely big.
How to qualify for bankruptcy
If you owe as little as $1,000 as long as you can not make your debt payments, you can file for bankruptcy in Saskatchewan.
Filing with an LIT (Licensed Insolvency Trustee)
Filing for bankruptcy is not difficult. Residents of Saskatchewan merely need to contact a certified trustee for bankruptcy. The trustee creates a confidence once the method begins from which the bankrupt individual’s creditors are compensated. Essentially, even if they don’t get it all, your creditors will receive some of what you owe them. Your property and assets will be deposited in the confidence and your creditors will be paid by the trustee.
All your assets are claimed by the confidence, with a few exemptions. Saskatchewan’s exemptions are as follows:
- Household furniture up to $4,500
- Whatever instruments and equipment you need to create a living up to $4,500
- home equity up to $32,000
- one motor car if needed for a company or company
- family clothing • medical equipment needed
- Registered pension savings plans minus contributions for the last twelve months
Bankruptcy Pros and Cons in Saskatchewan
A bankruptcy in Saskatchewan is not for everybody. Consider these pros and cons to assist you decide if it’s correct for you:
- Almost all of your debt is wiped out
- Collectors of debt will no longer call you
- You will receive economic schooling to assist you avoid bankruptcy
- You’re not left penniless, but you’ve left some belongings to assist you get started clean
- For seven years, bankruptcy will efficiently destroy your credit, making it difficult to obtain low-interest credit if you can obtain it at all
- Upon bankruptcy, you end up giving up much of your estate
Get the Assistance You Need Today
If you think bankruptcy filing is your only option in Saskatchewan, you’ll want to learn more about other debt relief solutions like debt settlement and credit counseling that won’t destroy your credit for seven years. For more information on all of your alternatives, contact us here.
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.