At the beginning of 2013, Canadians who sought in borrowing decelerates as per the report proclaimed by the Bank of Canada. The decreasing number associates with the lower average of household debts that Canadians are taking. During the last quarter of 2012, the household debt in Canada slightly shifted to $0.27 per $100 of post-tax disposable income. With the diminishing rate of Canadians lending, it implies that most of the residents are striving to eliminate both their protected and unprotected debts.
However, considering that these numbers total the average across all provinces, some provinces have an extreme shift in terms of consumer debt. Some of the residents are having difficulty in paying even just the minimum amount required monthly. If you’re among these residents who contributed to the rise of consumer debt, you might consider a solution to your debt.
Moreover, it’s always a relief knowing that help at hand. If you’re having trouble managing your debts each month, you can try qualifying for a consumer proposal; besides, other alternatives will aid you with your burdens, you can consider debt consolidation, debt settlement, or credit counseling. Furthermore, if every option fails, filing for bankruptcy will be your utmost choice.
Impact of Bankruptcy to Yukon Residents
Bankruptcy as the utmost debt solution is designed for individuals who can no longer pay for their obligation each month. Regardless if you owe for at least $1,000, you can file for bankruptcy if you can’t bear making the minimum payments of your debts. However, Yukon residents mostly filed for bankruptcy are those owing $10, 000 dollars or more.
When you file for bankruptcy in Yukon, you need to contact a licensed bankruptcy trustee. Your trustee functions to set up a trust in your name where you’ll deposit your property or assets. The proceeds of this trust are used to compensate your creditors. This way, creditors and lenders will get a part of what you owe to them. Moreover, the trustee will administer the payment, and only you get a few of these assets during your bankruptcy discharge.
Yukon Bankruptcy Exemptions
During bankruptcy your assets are deposited in the trust, however, it is in exempt to the following:
- One year supply of food, fuel, and other needs
- Personal Clothing
- $500 worth of household furniture and equipment
- $600 worth of tools for trade or business
- $3,000 worth of home equity
- Your registered retirement savings plans, but with the latest twelve months of contributions surrendered in your trust.
Positive and Negative Aspects of Yukon Bankruptcy
You should bear in mind that bankruptcy is not a perfect getaway for your inability to pay off your debts. Provided that you already seek out the other debt solutions, bankruptcy as a ray of hope bears both pros and cons. The following are the pros and cons of bankruptcy:
- Bankruptcy can eliminate all unsecured debts
- It hinders the collection of your debts via the automatic stay
- You can gain more awareness on how to improve your spending habits
- It gives you another chance to restore and rebuild your finances
- Though it eliminates secured debts, it does not erase your secured or protected debts
- It can destroy your creditworthiness and credibility
- Bankruptcy can damage your credit standing significantly
- It seizes all your assets, and you’ll only be left with a few to sustain a living
Is Filing Yukon Bankruptcy the best debt Solution?
Filing for bankruptcy is definitely the only solution. There are other debt solutions that you can take to eradicate your debts. You may consider debt consolidation loans, debt settlement, or credit counseling. Moreover, the cost of bankruptcy both financial and personal is too much to bear. You might even be surprise as to how bankruptcy can affect your assets. Hence, considering a consumer proposal or loan consolidations will make things more easier for you.
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.