Furthermore, the booming economy instigates residents to pursue new debt confidently. In fact, the residents that indicate an increase in their debts are greater than those who have reported a decrease from the year 2005 to 2009.
Besides, the Saskatchewan Chamber of Commerce and the Certified General Accounts Association of Saskatchewan specified that this increased is not impacted by consumers failing to redeem their secured debts; rather, it is caused by the consumers’ way of spending associated by their money habits. These two factors primarily trigger the significant rise of consumer debt in Saskatchewan.
Thus, consumer spending greatly stimulates the procurement of debt. With this dilemma, individuals will likely draw themselves in paying for higher interest rates, which may result in unpaid debts.
Amidst this alarming cycle, considering a debt solution such as a consumer proposal, loan consolidation, and another debt solution is the key. If all else fails, your only hope is by filing for bankruptcy.
Basic Facts of Saskatchewan Bankruptcy
Bankruptcy is an efficient means that frees you from the amount you owe to creditors and lenders. If your debt is too much that you can no longer manage to pay, bankruptcy can eliminate them. Besides, this does not entail that you can only qualify for bankruptcy f you owe a large sum amounting to hundreds and thousands of dollars. In Saskatchewan, you can qualify for bankruptcy even for at least $1,000 and is unable to make the required payments.
Saskatchewan residents who wish to file for bankruptcy will need a licensed bankruptcy trustee. As soon as the trustee finds you insolvent, a trust will be set up. Your property or asset will be deposited on this trust to pay your debt. Your creditor will be compensated with a certain amount, though it may not be in full of what you owe.
Saskatchewan Bankruptcy Exemptions
The trust will possess all your assets with some in exempt such as:
$4,500 worth of household furnishings:
- $4,500 worth of tools for your trade
- $32,000 worth of home equity
- one motor vehicle if needed for work or business
- clothing for the family
- essential medical tools and devices
- registered retirement savings plans, but with the last twelve
- months contribution deposited in the trust
Pros and Cons of Saskatchewan Bankruptcy
Filing for bankruptcy in Saskatchewan is not your only hope. You can consider qualifying for a consumer proposal, loan consolidation, and other debt solutions. Besides, before stepping in, it is a must that you clearly understand the pros and cons of bankruptcy.
- Bankruptcy will completely ravage your credit repute for seven years or more
- It is impossible for you to to get a new loan or credit card
- Most of your assets will be liquidated.
- It will not eliminate your secured debts
- Essentially, you can eradicate all your unsecured debts
- Debt collectors are prohibited to make collections.
- You will acquire financial literacy to shun bankruptcy for the second time.
- You can obtain some of your assets which will be enough to sustain your strife in rebuilding your finances
Should I file for Bankruptcy?
Filing for bankruptcy is a painstaking process. Besides, you should explore other debt alternatives before filing for bankruptcy. Moreover, understanding on how do a consumer proposal affect your assets will help you realized that bankruptcy isn’t the answer.
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.