Throughout Canada, residents showed a willingness to take on an increasing quantity of debt in 2012, with the total family financial obligation owned by Canadians reaching $1.41 trillion dollars at the beginning of 2013.
This figure consists of all the debts of Canadian residents, including safe debts such as home loans and unsecured consumer debts such as credit cards, installation loans and revolving lines of credit.
Nova Scotia has one of the highest debt service burdens in the entire nation, which suggests that Nova Scotia citizens are committing a higher portion of their disposable income to financial obligation and interest payments than homeowners in other provinces.
The typical financial obligation service burden in Nova Scotia does not reach the high of nearly 10 percent in British Columbia, but it is far greater than the average of 6 percent in Newfoundland.
Because much of this home financial obligation in Nova Scotia consists of high-interest customer financial obligation, there is the issue regarding whether homeowners will be able to pay all their expenses. If you reside in Nova Scotia and are having trouble making your minimum month-to-month debt payments, there are options that can assist you make your debt more workable. Among these is the customer proposition.
Nova Scotia Consumer Proposals
When citizens of Nova Scotia want to lower the quantity of principal that they owe their creditors in addition to the interest charged on this principal, they might select the consumer proposal.
Nova Scotia locals who go this path work with a certified personal bankruptcy trustee to prepare an arrangement with financial institutions to consider financial obligations paid in full for less than what is owed.
Interest and charges frozen
At the same time, interest charges are typically frozen. The result is a binding arrangement on all creditors that enters result as quickly as financial institutions representing 51 percent of the debt accept it.
A customer proposal in Nova Scotia is a convenient way to settle financial obligations and save money. Payment is made to financial institutions by means of the trustee in either regular monthly installations or one lump-sum payment. Rather of needing to keep in mind to pay several financial obligations monthly, you send out loans only to the insolvency trustee.
Should I Apply For A Nova Scotia Consumer Proposal?
Knowing whether you should select the consumer proposal depends on your scenario. It is a beneficial solution for those with large financial obligations, but you need to owe less than $250,000 to qualify for a consumer proposal. Married couples can file jointly and will certify if they owe as much as $500,000.
Will Iose my home?
Your property is protected in a consumer proposition, unlike insolvency. Nova Scotia locals typically pick this debt service because of its defenses, but they also like it because it requires hesitant financial institutions to agree to favorable terms for the debtor when lenders representing the simple bulk of the debt have signed on to the proposal.
On the other hand, there are considerable disadvantages of a consumer proposal in Nova Scotia. Unlike a debt settlement program, which likewise lowers primary and rate of interest, the consumer proposal is tape-recorded like an insolvency, and it affects your credit negatively for about 7 years.
That is its chief disadvantage, but a customer proposition can likewise render null and void the beneficial terms you have worked out with your financial institutions if creditors holding a basic majority of your debt turn down the proposal.
- Consumer Proposal Yukon
- Consumer Proposal Saskatchewan
- Consumer Proposal Quebec
- Consumer Proposal PEI Prince Edward Island
- Consumer Proposal Ontario
- Consumer Proposal NWT North West Territories
- Consumer Proposal Nunavut
- Consumer Proposal Nova Scotia
- Consumer Proposal Newfoundland
- Consumer Proposal New Brunswick
- Consumer Proposal Manitoba
- Consumer Proposal British Columbia
- Consumer Proposal Alberta
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.