Who to contact when going Bankrupt

Contact a Licensed Insolvency Trustsee (LIT) 

Knowing who to contact when you are looking at declaring bankruptcy can sometimes be hard. Your first step will be to speak with a Licensed Insolvency Trustee. The Trustee will provide a free confidential consultation and review your financial situation and discuss your options, including budgeting assistance or a referral to a non-profit credit counselling agency if you are in the early stages of financial difficulty. It might even be to get a consolidation loan from a financial institution. These options may help you get back on track and keep your credit rating in good standing.  

However, if your debts are too high or in collections, the Trustee may recommend personal bankruptcy or consumer proposal to help deal with your debts. Your Trustee will explain the pros and cons of each option, so you can make the decision that best meets your needs.

FREE Consultation and Application Process

If you choose to move forward with personal bankruptcy or consumer proposal, the Trustee will gather all relevant information and documentation. The Trustee will discuss the tasks or duties that you must do to complete your bankruptcy or consumer proposal successfully.

File for Bankruptcy

Meet with the Trustee to review and sign your bankruptcy documents. Once the bankruptcy documents are signed, they will be filed with the Office of Superintendent of Bankruptcy, and notices will be sent to your creditors.

Once the Office of Superintendent of Bankruptcy processes the bankruptcy documents, a stay of proceedings stops all legal actions, wage garnishments and other collection activities by your creditors.

Debt Payments 

Your Trustee will have advised you to stop paying your unsecured creditors and continue paying your secured creditors, such as your mortgage and vehicle loan. This assumes that you have decided to keep the assets, such as your house and vehicle. If you choose to give up these assets, you can stop making these payments, and the creditor can take back their security and file an unsecured claim in your bankruptcy estate for any balance owing once the security is sold.

Claims of Creditors

Your creditors will file claims, secured or unsecured, in your bankruptcy estate. Your Trustee will review these claims and decide which ones are admitted or disallowed. Your Trustee will discuss any disallowed claims with you.

Unsecured creditors with admitted claims will share in any proceeds that get paid out from your bankruptcy estate.

Secured creditors with legitimate claims will likely give you the option to continuing with payments or giving back the asset secured by their debt.

Trustee’s Fees 

If the value of the non-exempt assets sold is not sufficient to pay the Trustee’s fees, you will be required to make monthly payments to cover these costs. The Trustee will review this in the application process, in the “FREE Consultation and Application Process”, so there should be no surprises.

Mandatory Financial Counselling

You will be required to attend two counselling sessions to develop budgeting skills, review money management and set future financial goals. The purpose of these sessions is to help you better understand the warning signs of financial difficulty, avoid future financial missteps and learn how to rebuild and manage credit after bankruptcy.

Monthly Reporting 

You will be required to submit monthly income and expense statements during your bankruptcy. Your Trustee will use these reports to determine any surplus income obligations.


You will receive a discharge provided you have completed all of your bankruptcy duties.  

If you have not completed some of your duties, you will be required to attend a Court hearing, where the Bankruptcy Court will set the duties that you must complete before you can be discharged from bankruptcy.

This article is a general overview of the bankruptcy process; however, each situation is unique. Your Trustee will review your particular situation and provide you with information specific to your circumstances so you can make an informed decision.

Most Trustees will provide you with a FREE consultation to review your situation and outline the options

If you are having difficulty paying your debts you should contact a Trustee in Bankruptcy (Licensed Insolvency Trustee) to review your options.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of major financial stress;

  • You won’t be stuck in an assembly line process.

  • You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.

  • We will review your debt solution options, including filing bankruptcy or a consumer proposal.

  • We help Canadians with overwhelming debt get fresh financial starts.

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free consultation.

We offer free consultations to review your financial situation and practical debt resolution options. Contact us to discuss your situation over the phone, a video chat, or in-person in Saint John, Moncton, Fredericton, Charlottetown, Dartmouth, or Miramichi.

Consumer Proposals

A consumer proposal is a debt relief solution legislated by the federal government. A consumer proposal allows you to consolidate your unsecured debt or settle your unsecured debt for less than you owe and with no interest charges.

Here are the top 10 benefits of a consumer proposal.

  1. write-off part of your debts

  2. stop collection calls

  3. stop a wage garnishment

  4. unfreeze your bank account

  5. legally binding on all unsecured creditors

  6. deals with CRA and payday loan companies

  7. you keep your assets including your tax refund

  8. reduce your monthly payment to something that is affordable

  9. no interest on monthly payments

  10. avoid bankruptcy

We work with you to craft an offer you can afford.

The cost of a consumer proposal is known upfront. What you pay is exactly, and only, what payment you negotiate with your creditors at the beginning of the consumer proposal process. Once you complete your payments and the terms of your proposal, your debts are eliminated.

A consumer proposal can only be filed with a Licensed Insolvency Trustee like Powell Associates Ltd. Learn how to file a consumer proposal or contact one of our offices today (Saint JohnMonctonFrederictonCharlottetownDartmouth, or Miramichi) to talk about how a consumer proposal can help you get out of debt and avoid bankruptcy.

Contact Our Team about a consumer proposal

Debt Consolidation vs Consumer Proposal

If you have significant credit card debt, tax debts or other unsecured debts, you may be wondering if a debt consolidation loan, home equity loan or second mortgage are a good option to consolidate your debts.

An unsecured consolidation loan can be difficult to get if your credit score already reflects poor or too much credit. Even if you have equity in your home, it can be difficult to qualify for a home equity loan or second mortgage and the costs and interest rate can be significant. 

Our debt professionals can help you review your debt restructuring options and compare the pros and cons of a new loan or second mortgage with making a formal, debt settlement offer to your creditors through a consumer proposal.

Book a free consultation to review your options

Filing Personal Bankruptcy

Personal bankruptcy should be a last resort, but sometimes it is the right solution to help you get out of debt. Our licensed insolvency trustee can help you decide if filing bankruptcy is the best option to eliminate your debt.

No matter how serious the debt problem, remember there are debt relief options. At Powell Associates Ltd. you always talk to an expert. Consultations are free and we offer flexible appointment times.

Call our office 506-638-9220 or email us today.

A bankruptcy and consumer proposal can only be filed through a Licensed Insolvency Trustee. We are licensed by the federal government to help you deal with debt.

Ask us about your bankruptcy options

Debt problems don’t go away on their own. If you cannot afford to repay your debts on your own, as Licensed Insolvency Trustees we help you explore all your options and choose the solution that is best for you.

Break Free From Credit Card Debt

If you are only making minimum payments on your credit cards it will take you years to pay off your balances, if at all. We can help you consolidate your payments or make a settlement offer that can lower your credit card balances. Your credit cards are rolled into one reduced monthly payment.

This is not a new loan, it’s a government-approved interest-free debt settlement plan payable over up to five years.

Stop the Payday Loan Cycle

Payday loans cause financial stress because the interest accumulates faster than you can pay it off. Over time this eats away at your paycheque. Once you fall behind, payday lenders use aggressive collection tactics like calling your employer and garnishing your wages.

We can include payday loans in your program and help you break the payday loan cycle.

Get Tax Debt Relief

Only a Licensed Insolvency Trustee has the options that can help you reduce your tax debt liability. Tax debts are included in your debt settlement program with other debts and the penalties and interest will stop. If CRA has frozen your bank account or garnished your wages, we can reverse those actions.

Student Loan Debt Forgiveness

Looking for help resolving student loan debt? If you have been out of school for 7 years, your government student loan debt can be discharged through a bankruptcy or consumer proposal.

Eliminate High-Interest Installment Loans

You may have tried to consolidate or pay bills by taking out a high-cost financing loan. While these types of consolidation loans can help you deal with the immediate demand for repayment, they come with an interest rate of 39%, 49% and even 59%.  Installment loans meant for those already in debt or with poor credit just postpone, rather than solve the problem.

Unsecured loans, whether owed to a bank, credit union or financing company can be eliminated with payments determined based on what you can afford.

Why Talk with a Licensed Insolvency Trustee?

If like many of our clients, you are struggling with debt, it is time to break the debt cycle by working with a Licensed Insolvency Trustee near you. We are licensed by the Government of Canada to help you with your debts.

We can help you break free from debt.

If you would like help becoming debt free, call our team today:

Saint John (506-638-9220)

Moncton (506-870-8277)

Fredericton (506-474-2423)

Charlottetown (902-620-4990)

Dartmouth (902-403-3602)

Miramichi (506-502-7913)

Book a free consultation today