The economic statistics of Canada begets an alarming number at the start of 2013. The data shows that there is an increase in consumer debt, which accounts for almost $27,500. This implies that more Canadians are borrowing more than the previous year. Moreover, this sudden increase is not anticipated since there was an evident reducing trend of consumer debt since 2009.
Furthermore, each province in Canada except British Columbia exhibits an increase in debt levels in the last 3 months of 2012. Quebec, on the other hand, ranks the highest among the provinces. It may be perceived that the average level of consumer debt n Quebec is about $7,500 lower compared to Canada, but considering the rapid increase is still alarming. However, if you are on the same proposition, you may qualify o file for bankruptcy in Quebec. This way, you can recover from your indebtedness and cope up with paying your obligation each month.
Basic Facts of Quebec Bankruptcy
You will qualify to file for bankruptcy in Quebec if your property and wage cannot practically pay off your debt or even the minimum each month. This debt solution is established to empower your capacity to renew your finances. It will decapitate the burden of your high-interest debts and a variety of obligations every month.
Moreover, you can only qualify for bankruptcy if you have acquired a total of not less than $1,000 of unsecured debt. Similar to the other provinces in Canada, filing for bankruptcy is done through a licensed bankruptcy trustee. You will have to present your current financial constraints to the trustee. If you qualify, the trustee will set up a trust where all your unsecured assets will be deposited.
Quebec Bankruptcy Exemptions
When filing for bankruptcy in Quebec, your trustee will deposit your assets to a trust. The proceeds of such trust will be used to pay your creditors or lenders. However, there are assets that are in exempt to this process which include the following:
- essential food, clothing, and fuel for your household
- any financial support bestowed as a ruling
- $6,000 worth of household furniture and appliances
- all tools for work or business
- bequeathed or acquired property that is claimed by the donor as immune
Advantages and Disadvantages of Quebec Bankruptcy
Although filing for bankruptcy in Quebec is not a process that can be done overnight, the relief it yields provides a clear advantage. It may carry some disadvantages that may jeopardize your credibility; however, if it’s the last resort, there is no other better solution but to file for bankruptcy. Before doing so, you must be aware of the different advantages and disadvantages of bankruptcy which are listed below:
- your debts that re eliminated will make your load lighter
- the process will help you in managing your finances through credit counseling
- it prohibits debt collections from collecting your debt
- will allow you to have a clean start to rebuild your finances
- you will not be able to acquire a board position in a corporation of
- charitable boards
- destroys your credit report for 7 years or more
- will result in losing some though not all of your assets
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.