Consumer Proposal in Saskatchewan
Despite the challenges in terms of economic stability, there is a positivity that economists foresee on the economic attainment of Canada. The slow dropped of consumer debt among Canadians is an optimistic implication that most residents are becoming more cautious in their obligations. Household debt accumulated a slow rate in almost 10 years. Regardless of the increase in household debt of individuals aging 65 years older, the residents aging from 18 to 44 exhibit a significant drop, which is positive news for everyone. Moreover, a big contribution is seen for residents aging 45 to 64 years old, which yield negative inflation in their indebtedness.
In totality, there was a significant improvement in decreasing the household debt for each aged association in 2012. However, by just considering the consumer debt of the household, there are still things that can’t be tolerated. In fact, in the last quarter of 2012, Saskatchewan accumulated over $29,500 of consumer debt. This is higher as compared to the overall average of Canada, which accounts for $27,500. Taking into consideration the high charges in interest, it is perceived that it might result in drastically in the years to come. Regardless of high compensation or income, if debts are piled up garnering high-interest charges, one might not be able to afford to pay each month
If you’re one of these residents, you must look into the future and manage your finances wisely. If your debts are too much to bear, you might start considering debt solutions such as a consumer proposal to help you find your way out.
In This Guide...
Understanding a Consumer Proposal in Sask
Similar to the other debt-relief alternatives, a consumer proposal in Saskatchewan is established to lessen the burden of your debt and eradicate interest charges. This way, you can manage your debt conveniently. However, unlike other debt relief programs, a consumer proposal is filed similar to bankruptcy. Thus, you need to contact a licensed bankruptcy trustee to craft the proposal for you. This is a must since you cannot put together a proposal yourself; otherwise, your creditor will deny it. A consumer proposal is a legal binding agreement that can only be in effect with the aid of a licensed trustee.
You will be working with your trustee in putting a favorable proposal that your creditors are likely to accept. This includes settling your debts to be paid in full, making you pay less than what you originally owe. As soon as your creditors accept the proposal, you will have to pay to your trustee in fixed payments or installments. You are bound to pay and follow what is stipulated under the proposal. Besides, failure to do so will result in consumer proposal annulment.
Positive and Negative Aspects of a Sask Consumer Proposal
Positive Aspects
- A consumer proposal is advantageous to those who owe a large number of consumer debts. An individual filing can qualify up to $250,000 while $500,000 for joint filing
- It can secure your assets which can prevent your creditors from potentially seizing it.
- You no longer have to deal with your debt collectors as they will be prohibited to collect the debt.
- A consumer proposal can require hostile creditors to reduce your debt.
- You only need the creditors consisting of 51% of your total debt to agree to the proposal, for the proposal to take in effect.
- You can lessen your expenses if you file for a consumer proposal than bankruptcy.
Negative Aspects
- Other alternatives like debt settlement can usually result in the same principal discounts with a reduced interest charge without risking your credit repute for 7 years.
- A consumer proposal can give you a 2 points difference in bankruptcy rating, which is a very thin line. Thus, it can also damage your credit rating massively as to what bankruptcy can.
- There are cases, wherein you will be required to pay back the full amount of your debt, and can even constrain you to file for bankruptcy. In this instance, you will need to waive all your assets except the ones exempt.
- Your consumer proposal can be annulled if in case you missed three payments.
Get Help Today
It does not necessarily mean that a consumer proposal suits you when you have a large number of debts. There are other debt-relief options that may be suitable for your situation. If you are still uncertain which debt solutions is right for you, GET HELP TODAY.
