Although Ontario’s residents do but dwell on consumer debt, it does mean that they did not contribute a number of consumer debt in Canada. As we all know, most people are fond of getting installment loans for lard purchases, as well as credit cards, car loans, and all sorts of consumer debt. Moreover, delinquency rates on consumer debt mentioned remains to be lesser in Ontario and the rest of the province.
At the start of 2013, statistics indicated that the ratio of Canadians that potential unable to cope up with their debs is 1:20. These imply that 5% of the residents in Canada accept the fact that they may be unable to pay even the required minimum of their debts.
So, if you’re among this percentage of Ontario residents, you might need to seek debt solutions as early as possible. Debt relief programs such as credit counseling, debt settlement. Debt consolidation and a consumer proposal can be a tool to get rid of your burden every month. Besides, having exhausted this entire means yet still failing, you can file for bankruptcy in Ontario as your last resort
What are the Pros and Cons of NWT Bankruptcy?
When filing for bankruptcy in Ontario, you’ll need a licensed bankruptcy trustee to oversee your property. Your trustee will set up a trust to pay your debts. The proceeds from your trust will be distributed to your creditors, and you can only have this back once your bankruptcy is discharged. So, before you decide that bankruptcy is the best solution to your debt, you might want to be aware of both its advantages and disadvantages. Having adequate understanding on the process of bankruptcy will give you an edge.
Through bankruptcy, unsecured debts are eliminated. If your assets value high to cover more than what you owe, you can get these assets and use them to rebuild your finances. Bankruptcy in Ontario gives its residents a second chance to start afresh from their financial strife. It enables them to be wiser and more practical in spending their money. Besides, if anyone of its residents has a debt worth at least $1,000, which is not secured by assets as collateral, that person can file for bankruptcy.
On the contrary, bankruptcy downside includes disposing of off your assets to compensate creditors with at least a portion of your debt. Furthermore, bankruptcy in Ontario indeed eliminates most of your debts; however, this will not excuse you from paying your child support, alimony, or other legal fines, and penalties imposed, and other debts that are considered as non-dischargeable.
Ontario Bankruptcy Exemptions
As what the law stipulates, there are assets in exempt once you file for bankruptcy in Ontario. These assets are the ones you can keep to start restoring your finances. Once your discharge from bankruptcy, you will be left with something that is enough to sustain yourself and your dependents. Bankruptcy in Ontario allows you to retain the following:
- $5,650 worth of clothing
- $5,650 vehicle equity
- $11,300 each of household commodities and tools of the trade
Should I File for Ontario Bankruptcy
The biggest question to ponder when looking for the best approach is whether bankruptcy is the best option. You must carefully analyze the impact that it yields before stepping in. You should know that bankruptcy is not the only option available. You can consider qualifying for a consumer proposal or other debt solutions.
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.