How Much Debt is Required To File a Consumer Proposal?
Each of the debt solutions requires a certain amount o debt for you to qualify; whether you seek to file for debt consolidation, debt settlement, consumer counseling, or bankruptcy. For instance, when you decide between a consumer proposal and bankruptcy, the main pointer that you need to consider is the amount of money you owe.
Moreover, each province and territory has bears specified guidelines and requirements in filing for a consumer proposal. In this guide, you’ll be able to determine which debt relief options you can qualify based on the amount of your debt.
Consumer Proposal by Province :
- Consumer Proposal in Alberta
- Consumer Proposal in BC
- Consumer Proposal Manitoba
- Consumer Proposal in New Brunswick
- Consumer Proposal in Newfoundland
- Consumer Proposal in Nova Scotia
- Consumer Proposal in Nunavut
- Consumer Proposal in NWT
- Consumer Proposal in Ontario
- Consumer Proposal in PEI
- Consumer Proposal in Quebec
- Consumer Proposal in Saskatchewan
- Consumer Proposal in Yukon
Required Debt in Filing for a Consumer Proposal
If you’re thinking of filing for bankruptcy, you might want to see if you qualify for a consumer proposal. A consumer proposal is perceived to better than bankruptcy, especially to those who can’t afford to lose their assets or property. In a consumer proposal, your unsecured debt should not go above $250,000 if your filing as a single individual. However, if your filing for a joint consumer proposal, the maximum debt limit can be up to $500,000 of unsecured debts.
Required Debt in Filing Bankruptcy
Bankruptcy in Canada is a debt relief solution for Canadians who is incapable of paying any amount on their debts. So, even if your debt is lessened, yet you’re still unable to pay the stipulated amount, your option is t file for bankruptcy. In this case, your inability to make the essential debt payments due to low net worth can imply that you’re insolvent. This is what makes it different from a consumer proposal since a consumer proposal is established for those individuals who can’t meet up their monthly payments but can eventually pay a certain amount under their proposal.
In Canada, you don’t have to owe a large number of debts for you to be eligible for filing for bankruptcy. If your unsecured debt is not lesser than $1,000, you can seek t file for bankruptcy. Besides, it does not set any limit on the amount of unsecured debt that you owe from your lenders or creditors.
Debt Required for Debt Settlement
When speaking f debt settlement, your unsecured debt should not be lesser than $10,000 for you to be eligible. So, if you owe lesser than the required amount, you can consider a consumer credit counseling or debt consolidation loan instead; this is when you do not want to go over the process of filing for bankruptcy or draft a consumer proposal.
Moreover, debt settlement can potentially give you more advantages in the arrangements that you agreed between your creditors. Most Canadians are likely to considering debt settlement over a consumer proposal or bankruptcy due to its effect on their credit report. Thus, those who prefer not to scar their credit repute will likely choose a debt settlement as the best alternative.
Is a Consumer Proposal the Right Choice?
To determine the best debt relief approach, you will have to assess your current financial status. Also, you have to understand the different advantages and disadvantages of each. Finding the right choice is a matter of understanding each option concerning your financial conditions. You must first seek advice from a trustee or a counselor to help you evaluate yourself.
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.