NWT Bankruptcy
In 2013, there is evident progress in the consumer debt of Canada. This is perceived in the Northwest Territories and the rest of the provinces across Canada. The consumer debt entirely lowers, and the rate of credit card delinquency is decreased by almost 50%; installment loans as considered to be the most issue among the forms of consumer debt have even lowered by 1.2%. These numbers imply that Canadians are religiously complying with their obligation.
Moreover, considering that there are still defaulting debt rates, it only portrays that there are still residents who can’t afford to pay their debts every month. Possibly, you might be in the same positions. If ever you’re on the same path, keep in mind that NWT bankruptcy is not the end of the world. You can consider alternatives other than bankruptcy to alleviate the burden of your debt. As a resident of NWT, there are several debt solutions such as debt settlement and debt consolidation loans that can assist you.
How to File Bankruptcy in NWT
How to File Bankruptcy in NWT
If you feel that your debts are too much to bear, you can file for bankruptcy in NWT. If the total debt you owe reaches at least $1,000 in consumer debt, you are qualified to reach out to a licensed bankruptcy trustee. You will have to present your current financial turmoil to check whether bankruptcy is really the best option.
When you file through your bankruptcy trustee, the trustee will set up a trust where the funds to pay your creditor will come from. This does not mean that you’ll have to pay for the full amount. Though you’ve filed for bankruptcy, you will still pay a portion of your debt to your creditors. NWT residents in bankruptcy have acquired immunity in surrendering their assets for disposal. Your creditors will receive the proceeds or in some cases, will get the profits without directly disposing of the property.
Moreover, when you file for bankruptcy in NWT, you do not need to surrender everything off your property. There is a set of exemptions in places that are as follows:
- $500 worth of household furnishings and goods$600 worth of motor vehicle equity
- $3,000 worth of home equity
- One year food supply that’s enough to feed you and your family
- All health aids and medical devices
- Same as in most provinces and territories, your RRSP is exempt but contribution for a year will be in your trust.
What are the Pros and Cons of NWT Bankruptcy
Pros
- end of contract from debt collectors
- eliminating unsecured debts
- financial counseling
- Saving the money that supposed to be paid each month to debt collectors
Cons
- damage to your credit report
- lose of some property or assets
- difficulty in getting loans
- potential impact in your employment
- abstinence from being a director of a corporation or business
Should I File for NWT Bankruptcy
Filing for bankruptcy is not something that you can decide overnight. It needs careful planning and sound judgement. Having a wide understanding of what happens during and after bankruptcy will make you decide is its the best option. Moreover, if you haven’t explore the other debt solution available, considering a consumer proposal will would be a good start.
