Considering bankruptcy is a scary thing, but unfortunately it’s a thought contemplated by many Canadians across New Brunswick. With the job market failing and the cost of living increasing, bankruptcy in Mocton NB is a sad reality for many people. It doesn’t have to be a scary or horrible experience, however, and there are avenues that consumers can follow to help rebuild their lives and restore their credit. Here are just a few things to consider when facing bankruptcy in Moncton NB.
Find A Reputable Trustee
Trustees in bankruptcy are experts in the field, and can help guide and advise you throughout the process. They are regulated by Canadian law, and must comply with a very strict code of conduct. Trustees have an obligation to help debtors, and to ensure that their rights are protected throughout the process. This is not a guarantee those facing bankruptcy in Moncton NB can rely on when turning to other for profit, or even not-for-profit but privately owned, debt consolidation companies. Trustees will take a look at your assets, income, and debt, and can let you know if a consumer proposal or other debt relief option is available, and in some cases, can help consumers avoid bankruptcy altogether.
Investigate Consumer Proposals
A consumer proposal is a formal proposal for debt settlement made by you or on your behalf to a creditor. This option is available for those who cannot meet their debt obligations, but who owe less than $250,000, not including a mortgage. Consumer proposals are only available to individuals facing bankruptcy, not to businesses or corporations. In some cases, a consumer proposal can help a debtor avoid the need for bankruptcy in Moncton NB.
Gather Information
If a consumer proposal is not an option, or if you proposal is not accepted by your creditors, bankruptcy may be your only option. If this is the case, you will need to gather all your financial information, including monthly statements of income and expenses, and information required to complete any outstanding tax returns. This information will be needed on an ongoing basis while you are in bankruptcy in Moncton NB, and can be delivered to your Trustee, who can then ensure that it is filed properly and in a timely manner.
Be Prepared To Go Under Oath
All applicants for bankruptcy must attend at the Office of the Official Receiver to be examined under oath about all facts relating to the bankruptcy. Moncton NB examinations typically involve a number of questions being asked of the debtor, to ensure that all the information on the application is accurate, and to guarantee that there are no hidden assets or sources of income.
For more information about a variety of things to consider when facing bankruptcy in Moncton NB, contact Powell Associates Ltd at 506-870-8277.