Advantages of Filing a Consumer Proposal vs. a Bankruptcy

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A consumer proposal can be creative and involve the sale, over time, of assets and payment of all or a portion of the equity in those assets to your creditors. This would allow you to settle your debts through a lump-sum payment instead of having to make monthly payments.

How Will A Consumer Proposal or Bankruptcy Affect My Credit Rating?

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The proposal stays on your credit file for 3 years from the date of completion. A first bankruptcy will stay on your credit report for a period of 6-7 years (depending on which Province you live in) from the date of discharge. A second bankruptcy will be reflected on the debtor’s credit report for a period of 14 years from the date of discharge.

April 2016 – Personal Bankruptcy & Consumer Proposal Statistics

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Canada – Personal bankruptcies were down 0.9% and consumer proposal filings were up 8.2% as compared to the 12-months ended April 30, 2015.

New Brunswick – Personal bankruptcies were down 2.6% and consumer proposal filings were up 13.5% as compared to the 12-months ended April 30, 2015.

Personal Bankruptcy in 12 Steps

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Recognize the Problem, often the most challenging step as it requires that you admit that you are having financial troubles beyond your control and need help. Contact a Licensed Insolvency Trustee, the Trustee will provide a free confidential consultation and review your financial situation and discuss your options.

March 2016 – Personal Bankruptcy & Consumer Proposal Statistics

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Canada – Personal bankruptcies were down 1.1% and consumer proposal filings were up 8.1% as compared to the 12-months ended March 31, 2015.

New Brunswick – Personal bankruptcies were down 5.6% and consumer proposal filings were up 16.3% as compared to the 12-months ended March 31, 2015.

February 2016 – Bankruptcy & Consumer Proposal Statistics

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Canada – Personal bankruptcies were down 1% and consumer proposal filings were up 9.5% as compared to the 12-months ended February 28, 2015.

New Brunswick – Personal bankruptcies were down 3.9% and consumer proposal filings were up 19.9% as compared to the 12-months ended February 28, 2015.

The Real Cost of Vehicle Ownership

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Think about the cost of ownership before you buy and then think about the cost of use and think ahead to consolidate trips, skip the trip, or car pool with friends and co-workers.  The cost of vehicle ownership also needs to be considered when you choose where you live.  While the cost of housing may be cheaper here in rural New Brunswick, the cost of the travel can offset the housing cost savings.

January 2016 – Personal Bankruptcy & Consumer Proposal Statistics

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Canada – Personal bankruptcies were down 1.9% and consumer proposal filings were up 9.1% as compared to the 12-months ended January 31, 2015.

New Brunswick – Personal bankruptcies were down 5% and consumer proposal filings were up 19% as compared to the 12-months ended January 31, 2015.

What Is the Bankruptcy and Insolvency Act (“BIA)

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Generally speaking, the BIA is a federal statute that governs bankruptcy, proposal and receiverships in Canada.  It provides relief to the honest, but unfortunate debtor from the crushing burden of debt so they can get a fresh start.

2016 Surplus Income Standards

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When an individual files for personal bankruptcy the trustee will calculate whether or not he will be required to make surplus income payments based on his net household income.