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Never underestimate the harmful effect that too much consumer debt can have on your life, whether you live in Halifax or anywhere else in Nova Scotia. Unfortunately, some borrowers in Halifax have a harder time dealing with that effect than others and will need a lot of help, possibly even the legal kind.
While declaring bankruptcy in Halifax can also have a profound impact on your financial health, it may still be the best, if not the only course of action when your debts become too large to manage alone. Want to know how this drastic but ultimately beneficial debt solution can help you? Keep reading to find out.
Declaring personal bankruptcy in Halifax is the most significant choice you can make when you’re trying to get rid of your outstanding debts. A bankruptcy in Halifax involves a legally binding procedure that’s administered by a Licensed Insolvency Trustee who is a court-appointed professional regulated by Canada’s Bankruptcy and Insolvency Act.
Click here for more information about Canada’s Bankruptcy and Insolvency Act.
However, as we said, it’s important to consider the fact that declaring bankruptcy in Halifax does not come without some severe consequences for your finances, which we’ll explain further below. Therefore, before you decide that bankruptcy is right for you, be sure to research some of the less drastic alternatives in Halifax, such as:
When your debts are unmanageable and no conventional methods are effective, there are two legal procedures that you can file for in Halifax, one being a bankruptcy and other being a consumer proposal. Both procedures can only be filed by an Insolvency Trustee and can be helpful in eliminating your unsecured consumer debts. Once approved, both techniques will also put an end to any collection efforts, late penalties, added interest, and/or wage garnishment that were assigned to you.
That said, a consumer proposal, while similar in many ways, is actually a step above bankruptcy because the impact on your credit and finances will be less significant. For instance, consumer proposals are different because:
Can you get approved for a loan after a consumer proposal? Find out here.
A bankruptcy is different and ultimately more costly for you because:
In the end, the option that works best for you will depend on your financial situation in Halifax. If you’re making a reasonable income and can afford all the costs associated with a consumer proposal, then it’s definitely a safer choice for you. However, if your debts are completely unmanageable and you don’t see a way out, a bankruptcy in Halifax may be your only option, so it’s best to look into the procedure before it’s too late!
Look here to know what happens to your house when you file for bankruptcy.
Prior to declaring bankruptcy in Halifax, know that certain debt types are not going to qualify. As we said, qualified debts will need to be unsecured, meaning those where you haven’t provided collateral, such as your home or car, as security. Since the concept of secured and unsecured debt can be a bit confusing, we’ve included a few examples below.
Check out this infographic to learn how to create a debt repayment plan all on your own.
Remember, filing for bankruptcy in Halifax is not free, and this is true in more ways than one. Not only will the process come at a great personal cost because your financial profile will be damaged, but there are also many physical costs associated that may deter you from it entirely. These costs are going to vary depending on the legal regulations of your home province, your income, and what you owe in the first place.
Additional costs may include, but aren’t limited to:
Wondering what it costs to file for bankruptcy a second time? Find out here.
If you are worried about the prospect of declaring bankruptcy in Halifax or would like to know some ways of avoiding the process altogether, be sure to contact us for a solution. Remember, Loans Canada is here to help!
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