The earlier you identify warning signs of financial challenges and recognize the driving factors, the easier it will be to address those factors and get back on track.
Tag: debt solutions
A Gentler Method: Why a Negotiated Consumer Proposal Can Be A More Fair and Reasonable Debt Solution
If you have debt problems you also have options. A Consumer Proposal can be a much better and more manageable solution than bankruptcy to resolve your debts.
August 2016 – Personal Bankruptcy & Consumer Proposal Statistics
Canada – There was no increase in personal bankruptcies and consumer proposal filings were up 7.2% as compared to the 12-months ended August 31, 2015.
New Brunswick – Personal bankruptcies were down 2.9% and consumer proposal filings were up 1.7% as compared to the 12-months ended August 31, 2015.
Guaranteed, Co-Signed and Joint Loans
Generally, a co-signor is usually jointly and severally liable for 100% of the debt. This means that, if there is a default, the lender will pursue the primary debtor and the co-signer at the same time and will be happy to collect their entire debt out of whomever they can recover from first.
How to Avoid Bankruptcy
You can’t go bankrupt if you have no debt! Bankruptcy is a relief valve for people and companies who find themselves unable to cope with overwhelming debts. Bankruptcy is not necessarily the only option for resolving debts, but the availability of other options depends on individual circumstances. The sooner you identify and get assistance with your debts, the more options you have.
Dealing With Debt – Understanding the Two Types of Proposals
Division 1 Proposal Is when a consumer debtor owes more than $250,000 in debts, excluding the mortgage on their principal residence. If creditors don’t accept this proposal there is a deemed personal bankruptcy.
A consumer proposal is when a consumer debtor owes less than $250,000 in debts, excluding the mortgage on their principal residence. There is no deemed personal bankruptcy if the creditors reject the consumer proposal.
Dealing With Increasing Insolvency Rates
There are lots of factors but, I think the greatest single contributor is the proliferation of easy credit combined with low levels of financial literacy. High debt levels limit financial flexibility and the ability to weather and recover from financial setbacks resulting from job loss, reduced income, illness, separation/divorce, and other life events.
February 2016 – Bankruptcy & Consumer Proposal Statistics
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.
Struggling With Debt Tackle Your Finances Head On
Hiding from the reality of your financial situation will do nothing to improve it. People have a pre-disposition to hide from the truth, particularly when the truth is ugly. Unfortunately, we see this every day.
Announcement – New Designation for Insolvency Professionals
The Office of the Superintendent of Bankruptcy Canada released Directive 33, Trustee Designation and Advertising, updating the designation to be used by Licensed Trustees with regards to the advertisement, promotion, and communications related to their services. All trustees will now adopt the professional designation “Licensed Insolvency Trustee”.