Nova Scotia Consumer Proposal

With a non-mortgage debt load of over $41,000 reported by Statistics Canada in 2021, Nova Scotians are relying heavily on consumer credit.

Since much of this household debt in Nova Scotia includes high-interest consumer debt, there is a concern as to whether residents will be able to pay all of their bills. If you live in Nova Scotia and are having trouble making your minimum monthly debt payments, there are solutions that can help you make your debt more manageable. One of these is the consumer proposal.

Exploring a Nova Scotia Consumer Proposal

When residents of Nova Scotia want to reduce the amount of principal that they owe their creditors as well as the interest charged on this principal, they may choose the consumer proposal. Nova Scotia residents who go this route work with a licensed bankruptcy trustee to draw up an agreement with creditors to consider debts paid in full for less than what is actually owed. At the same time, interest charges are often frozen. The result is a binding agreement on all creditors that goes into effect as soon as creditors representing 51 percent of the debt agree to it.

A consumer proposal in Nova Scotia is a convenient way to pay off debt and save money. Payment is made to creditors via the trustee in either monthly installments or one lump-sum payment. Instead of having to remember to pay several debts each month, you send money only to the bankruptcy trustee.

Should I Choose the Nova Scotia Consumer Proposal?

Knowing whether or not you should choose the consumer proposal depends on your situation. It is an advantageous solution for those with large debts, but you must owe less than $250,000 to qualify for a consumer proposal. Married couples can file jointly and will qualify if they owe up to $500,000. Your property is protected in a consumer proposal, unlike bankruptcy. Nova Scotia residents often choose this debt solution because of its protections, but they also like it because it forces reluctant creditors to agree to favourable terms for the debtor once creditors representing the simple majority of the debt have signed on to the proposal.

On the other hand, there are significant disadvantages of a consumer proposal in Nova Scotia. Unlike a debt settlement program, which also reduces principal and interest rates, the consumer proposal is recorded like a bankruptcy, and it affects your credit negatively for up to six years. That is its chief disadvantage, but a consumer proposal can also render null and void the favourable terms you have negotiated with your creditors if creditors holding a simple majority of your debt reject the proposal.

Insolvency & Consumer Proposal Statistics in Nova Scotia

Get Help Today

You should explore all of your options before deciding whether a consumer proposal is the best choice for you in Nova Scotia. Fill out the debt relief help form to learn more about your options and find out if an alternative debt relief option may be right for your situation.

Annual Consumer Insolvency Rates in Nova Scotia

(Per 1,000 Population Aged 18 Years and Older)

Nova Scotia

	'20	'21	'22	'23	'24
Insolvency	4.4	3.7	4.3	5.2	5.1
Proposal	2.4	2.1	2.8	3.7	3.7

Halifax

	'20	'21	'22	'23	'24
Insolvency	3.8	3.0	3.4	4.0	4.0
Proposal	2.1	1.7	2.2	2.9	3.0

Cape Breton

	'20	'21	'22	'23	'24
Insolvency	5.9	5.3	5.4	6.7	6.8
Proposal	3.1	3.0	3.5	4.7	4.4

North Shore

	'20	'21	'22	'23	'24
Insolvency	5.3	4.1	4.8	6.0	5.5
Proposal	3.0	2.6	3.2	4.3	4.1

Annapolis Valley

	'20	'21	'22	'23	'24
Insolvency	4.1	3.5	4.2	4.6	4.9
Proposal	2.1	1.9	2.5	3.2	3.3

Southern

	'20	'21	'22	'23	'24
Insolvency	4.7	3.8	4.7	5.9	5.4
Proposal	2.3	2.2	3.1	4.5	4.1

Source: https://www.ic.gc.ca/

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