Growth in the economy is, with good reason, typically viewed in a positive light. A growing economy creates jobs, gives people more purchasing power, and increases the average standard of living. The economic boom on Saskatchewan in recent years has created all these benefits for most residents of the province.
However, there are also indicators that might be cause for alarm in the province. This economic growth has made Saskatchewan residents much less hesitant to take on new consumer debt. From about 2005–2009, the number of consumers in Saskatchewan who reported a rise in their debt levels was greater than the number who reported a decrease. The Saskatchewan Chamber of Commerce and the Certified General Accounts Association of Saskatchewan report that this increase in debt has not been fueled primarily by the acquisition of secured debts and assets such as homes and other properties. Instead, consumer spending has led to this rapid rise in debt levels.
When consumer spending drives the acquisition of debt, people are at a greater risk of getting into a situation where high interest rates make it impossible to pay all their creditors. When this happens, it is time to seek out a debt solution. When all other debt solutions fail, it is time to claim bankruptcy.
Saskatchewan Bankruptcy – What You Need To Know
Bankruptcy is a special process designed to help those who have so much debt that they will never be able to pay it in full. This does not mean that the total debt level one is carrying must be exceptionally large to qualify for bankruptcy. You can file for bankruptcy in Saskatchewan if you owe as little as $1,000 as long as you cannot make your debt payments.
It is not hard to file for bankruptcy. Saskatchewan residents simply have to contact a licensed bankruptcy trustee. Once the process starts, the trustee establishes a trust from which the creditors of the bankrupt individual are paid. Essentially, your creditors will receive some of what you owe them even if they will not get all of it. Your property and assets are deposited into the trust, and the trustee pays your creditors from it.
The trust has claim to all of your assets, with a few exemptions. The exemptions in Saskatchewan are as follows:
• household furnishings up to $4,500
• whatever tools and equipment you need to make a living up to $4,500
• home equity up to $32,000
• one motor vehicle when necessary for a trade or business
• clothing for the family
• required medical devices
• registered retirement savings plans minus the last twelve months’ worth of contributions
Filing for Bankruptcy: Saskatchewan Pros and Cons
A Saskatchewan bankruptcy is not for everyone. To help you decide whether it is right for you, consider these pros and cons:
• Virtually all of your debt is erased.
• Debt collectors will stop calling you.
• You will receive financial education to help keep bankruptcy from happening to you again.
• You are not left penniless but have some possessions left to help you make a clean start.
• A bankruptcy will effectively ruin your credit for seven years, making it all but impossible to get low-interest credit, if you can get it at all.
• You end up giving up much of your property in a bankruptcy
Get the Help You Need Today
If you think filing for bankruptcy in Saskatchewan is your only option, you will want to learn more about other debt relief solutions such as debt settlement and credit counselling that will not ruin your credit for seven years. Fill out the Canada debt relief questionnaire for more information on all of your options.