For 18 to 34 years old in Canada, insolvency filing has been common and increasing rapidly every year. Many difficult financial situations arise due to student loans and the high cost of living.

You will find that debts are not only of federal or provisional type but also bank loans and credit card debt. Many factors are involved when a person has to file for bankruptcy.

A bankruptcy is filed when a person can no longer pay his debt and wants a fresh start. In bankruptcy, the assets are liquified to pay the debts or create a repayment plan. In such a situation, a person requires an attorney to file bankruptcy under a consumer proposal.

Here are the factors that lead a person to file bankruptcy under a Consumer proposal in Kamloops, BC.

1- Student loans

In Canada, currently, student loans are a complex topic. In addition to bank loans, provincial and federal government loans are geared to assist their education fund. The terms of the loan differ based on territory and lender.

You are given a six-month payment relief after graduation with student loans. After these six months, the repayment of the loan starts.

2- Payday loan cycle

A payday loan is considered by someone experiencing financial difficulty or a poor credit rating. These payday loan cycles are short-term and often have high-interest rates and fees. These are extremely difficult to pay off.

Once someone gets into the payday loan cycle, it's almost impossible for anyone to get out. Due to the loan cycle, you might require bankruptcy under consumer proposal Kamloops.

3- Mortgages they can't afford

Considering a real estate purchase for many people require a significant amount of mortgage. Paying the mortgage is not sustainable due to the recent hike in interest rates. In addition to mortgage payments, many first-time house buyers do not consider some essential things.

These essential things include the cost of several things like insurance, utilities, taxes, and maintenance. All of these add up to the monthly expense of home ownership.

Unaffordable mortgages tend to lead people to file a case of bankruptcy under consumer proposal Kamloops.

4- Credit card debt

Currently, the combined credit card debt in Canada is around $74 billion. Credit cards are great options when it comes to individuals handling their expenses.

A credit card can be paid off after completing their expense factor or achieving a higher position. If that doesn't happen, the amount starts piling up so does the credit card debt and their rate of interest.

Final Say

These factors lead a person to file bankruptcy under consumer proposal through Licensed Insolvency Trustee (LIT).

If you have any bankruptcy issues to resolve, get your case filed under consumer proposal in Kamloops from Mike Wright & Associates. We offer attorneys for your case dealing and guidance to lead you out of your financial crises in sorted means.

Shane Taylor is the author of this article. To know more about Commercial Proposal in Kelowna please visit our website: debtfreebc.ca