Consumer Proposal in Nova Scotia
Canadians throughout Canada portrays enthusiasm towards acquiring huge consumer debts in 2012. In fact, at the start of 2013, the amount of household debt totals $1.41 trillion. This value account for both secured and unsecured debts including credit card debts, mortgages, and all forms of consumer debts.
One of the contributors to this figure is the residents of Nova Scotia. This conveys that the residents of Novia Scotia are dedicating most of their monthly expenses to debt payments. As compared to the other provinces and territory in Canada, Nova Scotia has a higher debt level.
Nova Scotia did not reach as high as the debt level of British Columbia, but it is greatly higher than the consumer debts average of Newfoundland.
Moreover, the household debt in Nova Scotia involves a consumer debt with high-interest rates, which makes it alarming if the residents will be capable enough to accommodate their payments each month. If you are a resident of Nova Scotia who’s seeking how to cope up with your monthly obligation, there are ways for you to settle your debt once and for all. This debt relief options can be through a consumer proposal.
Understanding Consumer Proposal in Nova Scotia
In Nova Scotia, reducing the amount of interest as well as the principal of your debt is possible through a consumer proposal. If you prefer to file for a consumer proposal, you need to work with a licensed bankruptcy trustee. The trustee can layout an arrangement with your creditors to consider forgiving the large portion of your debt; hence, you’ll be paying less than what you owe from your creditors. Also, upon filing for a consumer proposal, your interest will be frozen which makes it easier for you to pay your debts.
If you file for a consumer proposal in Nova Scotia, you’ll get to enjoy a convenient way of paying for your debts each month. This is true, especially to someone who owed to a bunch of creditors. Through a consumer proposal, you’ll only be paying to your bankruptcy trustee, who will be the one to compensate your creditors.
Furthermore, to make your consumer proposal in effect, your creditors constituting 51% of your total debts have to agree with the proposal; otherwise, the favorable terms stipulated in your proposal will not be in place. This means that creating a good proposal is essential for it to be accepted.
Should I file Consumer Proposal in Nova Scotia?
Your choice in filing for a consumer proposal will depend on your financial situation. If you owe much debt that will not reach beyond $250,000, you can qualify for a consumer proposal. If you pursue to file jointly, you can qualify provided your debt is not over $500,000. Moreover, a consumer proposal will protect your assets. In contrast to bankruptcy wherein, your creditors may have the right to claim. A consumer proposal is often a preferable solution since it forces hostile creditors to abide by the proposal when the majority of your creditors that constitute your large debts have agreed to it.
On the contrary, consumer proposals also bear a severe impact on your credit status. Similarly, debt settlement can also yield the same advantage that you can get in a consumer proposal while not causing harm in your credit rating. One of the major downsides of a consumer proposal is its negative impact on your credit rating, which can remain for seven years. Besides, if the majority of your proposal gets rejected by the simple majority, your favorable term will potentially be annulled.
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You must explore your options in a reliable and straightforward means. You might be in financial struggle as of the moment but it doesn’t mean forever. What you need is a help from the experts. Start now and fill out the debt relief form.
