Nova Scotia Consumer Proposal: Filing a Debt Proposal in Nova Scotia
Filing a Consumer Proposal in Nova Scotia
Are you a Nova Scotia resident struggling with significant personal debts?
Do you owe more than $10,000 and find that non-profit debt counsellors turn you away at the door?
Do you owe money to the CRA or another creditor who isn’t able or willing to offer a debt repayment plan.
You could be forgiven for assuming that you have no option but to declare bankruptcy.
But you’d be mistaken.
If your debts have spiralled beyond your ability to control, a Nova Scotia Consumer Proposal could be the answer to your prayers.
Here we’ll explain how this legal process works so you can decide whether it’s the best option for you.
What is a Nova Scotia Consumer Proposal?
A Consumer Proposal is an advantageous alternative to bankruptcy or a conventional debt management plan for many Canadians seeking relief for their debts.
Nova Scotia have one of the highest debt service burdens in all of Canada, with Nova Scotians sacrificing more and more of their disposable income to the repayment of their debts compared to other territories like Newfoundland.
The average Nova Sciotian debt service burden may not quite reach the high of almost 10 percent in British Columbia, but it could certainly be better.
A Consumer Proposal in Nova Scotia can be highly beneficial to many residents struggling with debt.
How it works
A Consumer Proposal is similar to a debt management plan, but carries with it a number of advantages that traditional debt management plans do not have.
For instance, a debt management plan still requires 100% of principal to be repaid.
A Consumer Proposal can write off a portion of the principal as well as freezing any interest, fees and charges.
To pursue a Consumer Proposal in Nova Scotia, you need the help of a Licensed Insolvency Trustee.
Click Here to find one near you.
This trustee will take the time to get to know your finance, your income, and your circumstances.
They will advise on whether a Consumer Proposal is the best course of action as well as potential alternatives.
If you choose to go ahead with a Nova Scotia Consumer Proposal, they will act as your Proposal Administrator.
They will help you to make a fair offer to your creditors.
If the majority of your creditors (enough to make up at least 51% of total debt) agree to the terms of the proposal, it will go ahead and all parties are bound by its terms.
Repayment can be made either as a lump sum or monthly instalments, depending on your circumstances.
To find out more about Consumer Proposals, Click Here.
Is a Consumer Proposal in Nova Scotia similar to a bankruptcy?
Only insofar as both solutions make it easier to escape your debt and potentially settle matters without needing to pay all of the principal to your creditors.
Unfortunately, like a bankruptcy, a Consumer Proposal also has negative repercussions for your credit rating and can remain on your record for around 7 years.
However, unlike a bankruptcy, your property is protected under a Nova Scotia Consumer Proposal.
We have a useful guide comparing Consumer Proposals and Personal Bankruptcy here.
Is a Nova Scotia Consumer proposal for me?
If you owe more than $10,000 but less than $250,000 a Consumer Proposal in Nova Scotia may be the ideal solution to reduce your debts, prevent a fortune being wasted on interest and charges.
There are some debts, such as tax debt where creditors are unable or unwilling to entertain debt management solutions.
In these circumstances a Consumer Proposal can allow you to honor your debts while still protecting what’s yours.
Still, a Nova Scotia Consumer Proposal is still a legal arrangement and not one that should be entered into lightly.
You need an impartial licensed expert to help you to make an informed decision as to whether or not this is the right solution for you.
Our licenses experts are here to help!
Whatever the size or nature of your debtm it’s important to remember that you’re not alone.
Since we opened our doors in 1999, we’ve helped hundreds of thousands of Canadians just like you to choose the right solution to liberate themselves from debt.
To see what our team of licensed experts can do for you, get in touch today on (877)879-4770.