For those feeling overwhelmed and unable to pay their debts, there are two regulated, last-resort options: bankruptcy, and the less drastic consumer proposal.
She said there is a risk of falling back into debt if other budgeting issues haven't been sorted out yet, while bankruptcy and consumer proposals have long-term implications that need to be understood. The law allows keeping essentials like clothes as well as a low-valued car and other assets, with rules varying by province. Bankruptcy also requires minimum payments of $200 a month through the process to cover administration costs, and significantly more if your income is above a threshold. For those unable to pay, the fee can be waived in certain circumstances.
Despite the requirements, the process is simpler than many fear, said Shelley Koehli, a licensed insolvency trustee in New Westminster, B.C.
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Understanding last-resort options when you can no longer pay your debtsCanadian debt levels have been rising for decades, with the average family now owing $1.78 for each dollar of disposable income, compared with 66 cents for each dollar of income in 1980. There is NO benefit in taking a consumer proposal. It has the same negative impact on your credit as bankruptcy. Rock bottom Very interesting article
Source: CTVNews - 🏆 1. / 99 Read more »
Canada’s debt to GDP ratio: ‘Nerve-racking to see debt servicing costs rising so quickly,’ RBC economist saysHere’s what you need to know about Canada’s debt to GDP ratio — covering federal, corporate and household levels Elected just 38% of the time Conservatives are responsible for 75% of all Canada's federal government debt....ever! The Liberals have set our debt to a downward trending sustainable level that we are the envy of the OECD and G-7! Right-wing American owned MI National Post forgets 2 key thing: Conservatives in power racked up 75% of all Canada's federal debt and gave us NOTHING in return....PMJT's investment will and does have an ROI: Wasn't this economist just on TV telling the country that the debt to GDP ratio was not too high, the lowest in the G7 in fact, and not to be worried about at this time? What, did she wake up in the other side of the bed the next morning?
Source: nationalpost - 🏆 10. / 80 Read more »