Since the Bank of Canada raised interest rates in July, it was only a matter of time for this to start impacting debt in Canadian households.
There is no clear pattern for how people find themselves in financial difficulty. It can happen suddenly through injury or illness, separation or divorce, or it can be due to not knowing how to manage your finances effectively.
With a consumer proposal, you get to keep your assets, which includes your tax free savings account and your RRSPs.
People have many concerns when they come into my office, but a few concerns seem to come up more often than not. One concern that is in the forefront of many minds is the fear of losing their home if they file bankruptcy.
If you file for bankruptcy your ex-spouse may be affected if you have a joint mortgage. Your bankruptcy will remove you from your responsibility to pay that debt, however, it does not: