Going Bankrupt in Nova Scotia, NS
Are you thinking about filing for bankruptcy as a resident of Nova Scotia?
Here’s everything that you need to know about this process.
Consumer debt is once again rising throughout Canada.
According to the latest evidence, it is currently at a level of $1.989 trillion and this shouldn’t come as much as a surprise.
Lately, it is clear that people are more willing to borrow money on anything from new cars to new furniture for their home.
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The average debt represented through loans has also increased by nearly 3.2%.
The problem with debt is certainly not impacting every area of Canada equally.
There are locations that are suffering more than others.
However, even low levels of debt can quickly snowball when crucial payments for pills are missed.
This can lead to people needing to look for paths to escape their debt including filing for bankruptcy.
In Nova Scotia, debt is now a greater cause for concern and has the highest rates of bankruptcies and consumer proposals per 10,000 people throughout Canada.
Many people do often believe that filing for bankruptcy is the only choice available to them.
It is important to be aware that there are other options that should be considered by Nova Scotia residents.
What Do You Need To Know About Bankruptcy In Nova Scotia?
If you are thinking about filing for bankruptcy in Nova Scotia, then there are a few things that you need to know.
First, the federal government is responsible for the majority of regulations for bankruptcy even though Nova Scotia is able to set it’s own exemption limits.
Bankruptcy should also be considered as a last resort rather than being the first step that you take.
There are numerous other options that you should consider the first such as a consumer proposal.
Bankruptcy will allow you to gain control of your finances and provide you with a clean start by eliminating most of your debt.
You will need to file your claim through a licensed trustee.
They will help ensure that trust is made up of your assets through which your creditors can be paid.
This means that your creditors will be able to regain some of the money that you owe them.
However, you will still remain the owner of certain property.
There are exemptions that cover things you will not need to hand over to your trustee.
The benefit here is that you will not be left with nothing.
Usually, the whole process will be completed in a period of nine months however it can last long.
Benefits And Disadvantages Of Filing For Bankruptcy In Nova Scotia
Before you determine whether bankruptcy is the right choice for you, you need to make sure that you weigh up the benefits and disadvantages.
A bankruptcy will certainly not solve all your debt problems how it does have certain advantages.
For instance, it will stop creditors from continuing with collections and harassing you for payments.
It will also erase certain debts completely including student loans.
You will even receive counseling to help you avoid another situation in the future where you end up in debt.
In terms of the issues, you will be restricted in terms of the business position you can hold.
This could limit your income.
Your credit will also be impacted for seven years however it should be possible to improve your credit rating over three once your bankruptcy process is complete.
The exemption amounts in Nova Scotia will also mean that you are required to give up the majority of what you own.
Again it is important to be aware that there are other options that you can consider before you choose to file for bankruptcy.
Some of these could deliver the right option for your needs.
This is largely going to depend on your level of debt and how much support you need.
For instance, you might be interested in making a consumer proposal.
A Consumer proposal, if accepted, can drastically limit the level of debt that you need to pay back.
Or, you can think about debt consolidation.
Although a loan, this can be beneficial if your main issue with the interest rate that you are currently tied to for your repayments.
Get The Support You Need Now
Are you interested in learning more about filing for bankruptcy in Nova Scotia?
If so, then our support team can help.
With expert debt relief services, we will ensure you find the answer you need.
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