In New Brunswick as well as throughout Canada the first step in declaring bankruptcy begins when you consult with a licensed bankruptcy trustee.
Filing personal bankruptcy in New Brunswick is a serious step and the consequences must be well thought out, before you proceed with filing you will want to know if you can afford to file, how long the process takes, will I end up in better financial shape or do I really have to declare bankruptcy at all.
If, after analysing your specific financial situation you are of the opinion that bankruptcy is the best alternative then arrange a meeting with a bankruptcy trustee, the trustee can fill you in on the consequences of this action.
Assess your debt:
The trustee will want to discuss your financial situation. Up until the time you made the decision to see a trustee you have been dealing with your debt on your own, you may have decided that bankruptcy is the best move but perhaps it is not. In assessing your debt the trustee will review your assets which include your house if you own it, your car and other tangible assets. The trustee will also review your liabilities by assessing your credit card statements, mortgage statement and any loans that are outstanding.
Eligibility:
The trustee will answer two pertinent questions; are you eligible to declare personal bankruptcy in New Brunswick and should you actually do it. It is not difficult to determine eligibility, you simply have to be insolvent and owe a minimum of $1,000. Deciding whether you should file is more difficult, there are alternatives that may be better suited. You might consider taking a debt consolidation loan or consolidate your debts using a debt management program. As everyone’s situation is unique, the trustee can provide you with some guidance.
Your duties:
There are numerous duties that you must perform during the bankruptcy process. Every month you must pay the trustee to cover the costs of administration, make your income known to the trustee every month, make surplus payments and attend two credit counselling sessions. The trustee will need the information necessary to complete your income tax return. At the end of the first seven months you will be asked for information that will allow the trustee to calculate your average income, this is needed to see if you have additional surplus income.
Once everything is complete you will be discharged from personal bankruptcy in New Brunswick, you can now focus on rebuilding your life and your credibility.
If you are facing personal bankruptcy in New Brunswick you are invited to contact Powell Associates Ltd, insolvency consultants and trustees. With their expertise and knowledge, the professionals at Powell can help you in attaining lasting solutions to your debt.