Frequently Asked Questions

Do I need a Lawyer or Attorney to File Bankruptcy

Actually, you don’t need a lawyer or attorney to file personal bankruptcy or consumer proposal in Canada.

While some lawyers may be able to provide some advice about your debt situation, they are not licensed to actually help you file personal bankruptcy or consumer proposal. The documents for personal bankruptcy or consumer proposal must be filed with a Licensed Insolvency Trustee.

The personal bankruptcy, consumer proposal process in Canada is regulated by a federal government department called the Office of the Superintendent of Bankruptcy (“OSB”). The OSB regulates and licenses the professionals in the personal bankruptcy and consumer proposal process, these professionals are Licensed Insolvency Trustees. You don’t need a lawyer to file personal bankruptcy or a consumer proposal.

A Licensed Insolvency Trustee (LIT)is regulated by the Federal Government to administer personal bankruptcy and consumer proposal filings.  Most Licensed Insolvency Trustees are also members of the Canadian Association of Insolvency and Restructuring Professionals and are subject to ethical standards and codes of conduct.  A Licensed Insolvency Trustee must complete a very comprehensive multi-year educational and experience program before obtaining a license to practice.

A Licensed Insolvency Trustee will treat you in a dignified manner and review the facts of your situation and explain how personal bankruptcy or a consumer proposal would work for you so that you can make an informed decision and choose the solution that is best for you. They can also help determine if a bankruptcy or consumer proposal is worth it for your situation.

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 a consumer proposal or personal bankruptcy.

  • 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 JohnMonctonFrederictonCharlottetownDartmouth, or Miramichi.

What info do I need to file bankruptcy

For a Licensed Insolvency Trustee (Bankruptcy Trustee) to evaluate your financial situation and the best option for you to deal with your debts, the Trustee will need the following information:

  • List of your debts; both unsecured and secured debts.

  • List of your assets; the Trustee needs these details to determine which assets are exempt from seizure in a bankruptcy or consumer proposal, exempt assets can vary between New Brunswick, Nova Scotia and Prince Edward Island.

  • Details of household income; the Trustee needs these details to calculate if you have surplus income, and what you would be required to pay in personal bankruptcy.

  • The number of people in your household, do you have a spouse and children?

  • If you have ever filed a personal bankruptcy before.

 

You Have Options

In order to qualify to file a consumer proposal, you must have debts of less than $250,000, excluding the mortgage on your principal residence. If you are over this limit, there is another form of a proposal that can be filed.

When we review your individual situation, we will consider whether or not a consumer proposal (or another form of a proposal) makes sense for you and review the pros and cons of a proposal as compared to bankruptcy and other non-legislated options.

Good to know! The fact that you filed a Consumer Proposal will stay on your credit bureau report for 3 years after you have completed all of the terms of your Proposal.

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 a consumer proposal or personal bankruptcy.

  • 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.

What is Debt Consolidation

What is Debt Consolidation

Debt consolidation refers to the act of taking out a new loan to pay off other liabilities and consumer debts. Multiple debts are combined into a single, larger debt, such as a loan, usually with more favorable payoff terms—a lower interest rate, lower monthly payment, or both. Debt consolidation can be used as a tool to deal with student loan debt, credit card debt, and other liabilities.

 

How Debt Consolidation Works

Debt consolidation is the process of using different forms of financing to pay off other debts and liabilities. If you are saddled with different kinds of debt, you can apply for a loan to consolidate those debts into a single liability and pay them off. Payments are then made on the new debt until it is paid off in full.

Most people apply through their bank, or credit union, for a debt consolidation loan as their first step. It’s a good place to start, especially if you have a great relationship and payment history with your institution. If you’re turned down, then should you consider other options to resolve your debt situation.

Debt consolidation maximizes the likelihood of collecting from a debtor. These loans are usually offered by financial institutions such as banks and credit unions.

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 a consumer proposal or personal bankruptcy.

  • 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 JohnMoncton, FrederictonCharlottetownDartmouth, 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 debt or settle your 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 John, Moncton, Fredericton, Charlottetown, Dartmouth, 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 the option of 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 is, 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 at 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 you feel 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

What is Consumer Debt

What is Consumer Debt

It is basically the sum of money borrowed by a consumer (not a business) for their personal use and household consumption. There are many kinds of consumer debts; these range from student loans, credit card debts, auto loans, payday loans, and mortgages.

Consumer debt is often has a higher interest rate, than the interest rate on a mortgage. For example, the interest rate on credit card debt could range from 18% to 29%. Most unsecured consumer debt can be discharged inside of a consumer proposal or personal bankruptcy.

 

 

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 a consumer proposal or personal bankruptcy.

  • 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 JohnMoncton, FrederictonCharlottetownDartmouth, 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 debt or settle your 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 John, Moncton, Fredericton, Charlottetown, Dartmouth, 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 the option of 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 is, 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 at 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 you feel 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

What assets can you keep with a consumer proposal in New Brunswick

There are certain assets that you generally get to keep when you file a consumer proposal. This list of assets varies from province to province; the following is a list of assets that are exempt from seizure in the Province of New Brunswick:

“You will note that there is no exemption for any real estate (House / Land) or Registered Education Savings Plans”

  • Furniture and household goods up to a maximum value of $5,000;

  • Food, clothing, and fuel for the debtor and family;

  • Registered Retirement Savings Plans (“RRSPs”) except for contributions in the past 12 months;

  • Pension Plans (can be exempt, if it meets specific criteria);

  • Whole Life Insurance (can be exempt, if it meets specific criteria);

  • One motor vehicle per debtor up to a maximum value of $6,500, subject to the claims of a secured creditor, if the vehicle is required by the debtor to earn a living and no alternate means of transportation are available;

  • Health and medical aids;

  • Two horses and harnesses, two cows, ten sheep, two hogs, 20 fowl, and food for six months;

  • Tools of the trade, equipment, and books up to a value of $6,500;

  • Household pets;

  • Seed grain and potatoes required for planting in the following quantities: 40 bushels of oats, 10 bushels of barley, 10 bushels of buckwheat, 10 bushels of wheat and 35 barrels of potatoes.

Your consumer proposal is an offer to keep your assets and compensate your creditors for any equity or value of your non-exempt assets.

You will note that there is no exemption for any real estate (House / Land). If you own real estate worth more than the mortgages registered against it, the Trustee must collect this excess value. 

For example – if you could sell your home and after paying the real estate fees and other expenses to sell the property and pay the mortgage in full, and still have money from the sale; then you have equity. This equity is not protected from your creditors. The amount of this potential equity will be factored into the consumer proposal to your creditors.

 

There is also no exemption for Registered Education Savings Plans (“RESP”). 

If you are keeping an asset that has a loan against it, you need to continue making the loan payments to keep the asset.

If you have any non-exempt asset you don’t lose them and are not required to sell them, but the value of the non-exempt asset become a factor in the amount of the offer you make to your creditors.


Who to contact when going Bankrupt

Contact a Licensed Insolvency Trustee (LIT) 

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.

Discharge

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 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 a consumer proposal or personal bankruptcy.

  • 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 debt or settle your 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

How to keep your home during and after bankruptcy

Just because you file personal bankruptcy does not mean you will automatically lose your house. If you continue making your mortgage payments the bank cannot foreclose or repossess your house.

Section 84.2(1) prevents secured creditors from repossessing assets solely because you filed personal bankruptcy.

For Example: if you default on the payments for your mortgage then the bank can foreclose on your home.

If there is equity (if your home is worth more than the mortgage debt on your home) then you will need to pay that equity to your Trustee in Bankruptcy for the benefit of your unsecured creditors.

In some provinces, there is protection for some of the equity in your principal residence. However, there is no protection for equity in your principal residence if you live in New Brunswick, Nova Scotia or Prince Edward Island.

For Example: In Alberta, the first $40,000 of equity in your home is protected from unsecured creditors.

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 a consumer proposal or personal bankruptcy.

  • 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 JohnMoncton, FrederictonCharlottetownDartmouth, 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 debt or settle your 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 John, Moncton, Fredericton, Charlottetown, Dartmouth, 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 the option of 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 is, 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 at 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 you feel 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

Will a consumer proposal pay down debt?

When you successfully complete your consumer proposal, your certificate of full performance releases you from the debts you owed before your consumer proposal was filed.

There are certain types of debts that do survive your consumer proposal; referred to as non-dischargeable debts:

  • Debts or liabilities resulting from obtaining property or services by false pretences or fraudulent misrepresentation. Note that this may include Employment Insurance overpayments.

  • Student loans are only discharged if you have not been a full or part-time student at any time in the seven years prior to filing for bankruptcy. Be sure to contact the National Student Loan Service Center for your End of Study Date, prior to filing personal bankruptcy or consumer proposal.

  • Fines, penalties and restitution orders imposed by Court.

  • Court awarded damages for intentionally inflicted bodily harm, sexual assault or wrongful death resulting therefrom.

  • Debts or liabilities arising out of fraud, embezzlement, misappropriation or defalcation.

  • Debts or liabilities for alimony, maintenance, spousal support or child support.

If you have any of these debts, it is important to discuss any debts that you think might fall in these exceptions with your Trustee before filing your consumer proposal. You can learn more about which debts a consumer proposal will release you from here.

Filing a consumer proposal does not release you from paying secured debts for assets you chose to keep. If you chose to keep your home and vehicle, you will be required to keep making the payments on these debts, which are secured by those assets.

When you receive your certificate of full performance for your consumer proposal, we strongly recommend that you keep this document in case a creditor or collection agency attempts to collect a debt that has been discharged in your consumer proposal. This document can also be helpful if you need to have errors on your credit report corrected.


Will bankruptcy clear all debts?

When you receive a discharge after completing your bankruptcy, it releases you from the debts you owed before your date of bankruptcy. When you successfully complete your consumer proposal, your certificate of full performance releases you from the debts you owed before your consumer proposal was filed.

There are certain types of debts that do survive your bankruptcy; referred to as non-dischargeable debts:

  • Debts or liabilities resulting from obtaining property or services by false pretences or fraudulent misrepresentation. Note that this may include Employment Insurance overpayments.

  • Student loans are only discharged if you have not been a full or part-time student at any time in the seven years prior to filing for bankruptcy. Be sure to contact the National Student Loan Service Center for your End of Study Date, prior to filing personal bankruptcy or consumer proposal.

  • Fines, penalties and restitution orders imposed by Court.

  • Court awarded damages for intentionally inflicted bodily harm, sexual assault or wrongful death resulting therefrom.

  • Debts or liabilities arising out of fraud, embezzlement, misappropriation or defalcation.

  • Debts or liabilities for alimony, maintenance, spousal support or child support.

If you have any of these debts, it is important to discuss any debts that you think might fall in these exceptions with your Trustee before filing your personal bankruptcy or consumer proposal.

Personal bankruptcy and consumer proposal do not release you from paying secured debts for assets you chose to keep. If you chose to keep your home and vehicle, you will be required to keep making the payments on these debts, which are secured by those assets.

When you receive your certificate of discharge, we strongly recommend that you keep this document in case a creditor or collection agency attempts to collect a debt that has been discharged in your bankruptcy. This document is necessary if you need to have errors on your credit report corrected.

What is a Division 1 Proposal

A Division I Proposal is the type of proposal you will need to file your debt is higher than $250,000, excluding the mortgage on your principal residence.

The terms of a Proposal can be as creative or straightforward as the circumstances require, bearing in mind that the objective is to get the creditors to accept it. Most Proposals filed by individuals are generally fixed monthly payments for up to 5 years. All Proposal payments must be paid to the Trustee, and the Trustee will pay periodical distributions to your creditors.

A Proposal for a consumer debtor typically deals with the debtor’s unsecured creditors. Secured creditors are only dealt with to the extent that the debtor wishes to retain the collateral (a house or car) held by the secured creditor. If you keep the collateral, then you will have to continue paying the secured creditor. If you surrender the collateral, the secured creditor can then seize and sell it and then file an unsecured claim in the Proposal for any deficiency.

A Proposal should provide a recovery to the unsecured creditors better than what the unsecured creditors would receive in bankruptcy. There would be no incentive for them to vote in favour of the Proposal.

For the Proposal to be approved, it is necessary for more than 50% (voting by dollar-value of claims) and more than two-thirds (by head-count, one vote for each creditor) to vote for the acceptance of the Proposal.

It is not unusual for creditors to object to the Proposal’s terms and put forth counter-proposals. These situations are unique to each Proposal and need to be evaluated and dealt with. Sometimes it may be necessary to amend the Proposal’s terms to get it accepted, but such amendments are only done with your consent. An adjournment of the meeting of creditors may be necessary to understand the objecting creditor’s concerns and attempt to negotiate an acceptable amendment Proposal.

If the Proposal, or an amended Proposal, is not approved, you are deemed to have filed an assignment in bankruptcy.

An accepted Proposal must then be sent to the Court for final approval. A Court-approved Proposal, or amended Proposal, is binding on all creditors affected by the Proposal including creditors that voted against the Proposal. as well as creditors that did not file a claim before the creditors’ meeting to consider the Proposal.

After the Proposal is approved, the Trustee will monitor its performance and whether any default has occurred. Default terms are usually described in the actual Proposal, and there are limited provisions for curing defaults. If the default is not fixed, the Trustee must notify the creditors of the default and then proceed to get discharged as Trustee. Once the Trustee is discharged, the creditors’ rights to pursue the debtor would be revived.

If all of the terms of the approved Proposal are completed, the Trustee will issue a Certificate of Full Performance, and the debts in the Proposal will then be considered to have been settled.

DIVISION II or “CONSUMER PROPOSAL”

A Consumer Proposal is a proposal to settle debts that can only be filed by a consumer (individual person) who owes less than $250,000, excluding the mortgage on the debtor’s principal residence. Business debts for a sole proprietor or business debts related to guarantees of corporate business debts and director liabilities can also be included as long as the total is less than the $250,000 threshold.

The Consumer Proposal process is more streamlined than the process for a Division I Proposal. Both options provide you with a stay of proceedings which will stop collection calls.

The Consumer Proposal needs to offer something better to the creditors than they would receive in bankruptcy. Also, our comments above regarding the inclusion or exclusion of secured creditors are equally applicable in a Consumer Proposal.

There is no mandatory meeting of creditors in a Consumer Proposal.

  • The Consumer Proposal is filed, and, if no meeting of creditors is requested within 45-days after filing (by at least 25% of creditors with filed claims), then the Consumer Proposal is approved.

  • If a meeting is requested, it will typically be held within 21-days after the expiry of the initial 45-day period. At that meeting, the Consumer Proposal will be approved if more than 50% (voting by dollar-value of filed claims only) of the unsecured creditors vote in favour of its acceptance.

  • As with a Division I Proposal, there could be a negotiation with one or more creditors to amend the terms of the Consumer Proposal before it is voted on. This negotiation may, or may not, require an adjournment of the meeting.

If the Consumer Proposal is not approved, unlike a rejected Division I Proposal, the debtor does not automatically become bankrupt. A Consumer Proposal cannot exceed five years in term, while a Division I Proposal can exceed five years. In a Consumer Proposal, the debtor must attend two mandatory counselling sessions; in a Division I Proposal, no counselling sessions are required.

Once approved, the debtor needs to fulfill the terms of the Consumer Proposal. The debts are not settled until the terms of the Consumer Proposal, and the counselling sessions are fully completed. The Trustee will typically make distributions to the creditors every year during the term of the Consumer Proposal and then will issue a Certificate of Full Completion at the end of the process.

The issuance of this certificate causes the debts to be settled subject to some exceptions that, if applicable, will be discussed with the Trustee prior to the actual filing of the Consumer Proposal.

A default will occur under the terms of the Consumer Proposal if a total of more than three monthly payments are in arrears or if any payment due less frequently than monthly is more than three months past due.

There is a limited ability to revive a Consumer Proposal that has gone into default. If it is not revived, the Trustee will distribute the funds on-hand and apply for its discharge from the file. Once the Trustee is discharged from the administration of a defaulted Consumer Proposal, creditors’ rights to pursue the debtor will be revived.

CREDIT REPORT IMPLICATIONS

Both types of the Proposal will be recorded on your credit report for three years after completing the Proposal. A five-year Proposal would stay on your credit report for a total of eight years.

Proposals that are based on fixed monthly payments can be paid early and will shorten the total number of years the Proposal is reported on your credit report.

If you pay off a five-year proposal in two years, the Proposal will be completed, and that will start the three-year clock ticking for when the Proposal falls off your credit report.

By comparison, if you went bankrupt for the first time, the bankruptcy will be recorded on your credit report for seven years after discharge from bankruptcy, which typically occurs between 9 and 21 months after filing for bankruptcy.

For a second-time bankrupt, the bankruptcy will be recorded for fourteen years after discharge, typically between twenty-four and thirty-six months after filing for bankruptcy.

For a second-time bankrupt, a proposal can make sense just from a credit report perspective as it will only stay on your credit report for three years after completion regardless of whether or not you have been previously bankrupt.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of significant 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 a consumer proposal or personal bankruptcy.

  • 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 JohnMonctonFrederictonCharlottetownDartmouth, or Miramichi.

Will My Consumer Proposal Affect My Spouse?

Will My Consumer Proposal Affect My Spouse?

Understanding if and how a consumer proposal affects your spouse will be a big determining factor as to whether a consumer proposal is worth it in your situation.

When you file a consumer proposal, it does not directly affect your spouse or reflect on their credit report. Your consumer proposal is between you and your creditors. Your spouse is not liable for your debts simply because he/she is your spouse. However, your consumer proposal can have an impact on the other person in the following ways:

Joint Debts

If you and your spouse obtain credit together, both of you are responsible for repaying the debt. If one party files a consumer proposal, the other person is still responsible for the entire debt.

Joint Assets

When you file a consumer proposal, your Trustee (Licensed Insolvency Trustee) will evaluate your assets. The value of your interest in these assets will be factored into the consumer proposal.

For example – you jointly own a home with your spouse and it is determined there is $10,000 of equity in the home. The amount you offer your creditors in your consumer proposal will include the value of your share of the equity in your home. It does not mean that you will have to sell your home. The consumer proposal payment will be another obligation for the household that the non-bankrupt spouse needs to consider.

Borrowing

Financial institutions sometimes base their lending decision on household income. The most common example is when granting a mortgage.

The higher the household income, the more you can borrow. However, if they consider your income, they will also consider your credit history. So if your income is required to purchase a home, it’s not likely that you will be approved, at least not until you have completed your consumer proposal, and you have rebuilt some positive credit history. They can choose to approve the mortgage based on your spouse’s income alone; however, it may limit how much you can afford to spend on a home.

Not Sure Where To Start? Get Your Free Review
Simply fill in the form below and our office will be in touch.

Surplus Income Contributions

When you file a consumer proposal, you may be required to make monthly payments based upon a calculation that depends on several factors; your income, the income of other household members, and the number of people in the household, among other variables. As such, your spouse’s income can result in higher payments to your consumer proposal. The Surplus Income calculation can be complicated, so you need to review it with your Trustee.

Separation and Divorce

Family law and bankruptcy law don’t necessarily work well together. In family law, it typically doesn’t matter who owns an asset; when you separate, everything is supposed to get divided equally regardless of who owns the assets. When you file a consumer proposal ownership of the assets matter, as well as when or if the ownership changed.

It’s important to realize that the circumstances and outcomes of a consumer proposal are not the same for everyone. You should consult a Licensed Insolvency Trustee for a detailed review of your financial situation.

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 a consumer proposal or personal bankruptcy.

  • 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.

What information is needed for a Consumer Proposal

A consumer proposal is a very effective way to avoid bankruptcy and negotiate a settlement with your creditors. Payments are generally overtime at less than full payout as long as more than 50% of your creditors agree.

A consumer proposal can be a much better and more manageable solution than bankruptcy to resolve your debts. To help determine if a consumer proposal is worth it for your situation you will need to provide certain information.

For a Licensed Insolvency Trustee (previously known as a Bankruptcy Trustee) to evaluate your financial situation and the best option for you to deal with your debts, the Trustee will need the following information:

  • List of your debts; both unsecured and secured debts.

  • List of your assets; the Trustee needs these details to determine which assets are exempt from seizure in a bankruptcy or consumer proposal, exempt assets can vary between New Brunswick, Nova Scotia and Prince Edward Island.

  • Details of household income; the Trustee needs these details to calculate if you have surplus income, and what you would be required to pay in bankruptcy as this is factored into a consumer proposal.

  • The number of people in your household, do you have a spouse and children?

  • If you have ever filed a personal bankruptcy before.

Here are just a few advantages of filing a consumer proposal versus personal bankruptcy.

• You want to pay your creditors more than they would get in a bankruptcy.
• You have a high income and could not manage the surplus income payment required in a bankruptcy.
• You have equity in assets that would take too long to pay within a bankruptcy.
• You have been bankrupt previously.
• You want to take advantage of a potentially shorter impact on your credit score.

You can be as creative as you want in determining the terms of a settlement put forth in a consumer proposal as long as it is fair and reasonable and you can get more than 50% of your unsecured creditors (by dollar-value of claims) to accept it. As long as you get over this 50% threshold, it will be binding on all unsecured creditors whether they like it or not.

Most consumer proposals are structured as monthly payments over time at less than the full amount owed. Generally, a consumer proposal should provide a higher return or recovery to the creditors than they would obtain in bankruptcy or there is no incentive for your creditors to vote in favour of it. Once the total amount of the settlement is determined and approved, you can pay it out early if you are able to do so and this would accelerate rebuilding your credit.

You Have Options

In order to qualify to file a consumer proposal, you must have debts of less than $250,000, excluding the mortgage on your principal residence. If you are over this limit, there is another form of a proposal that can be filed.

When we review your individual situation, we will consider whether or not a consumer proposal (or another form of a proposal) makes sense for you and review the pros and cons of a proposal as compared to bankruptcy and other non-legislated options.

Good to know! The fact that you filed a Consumer Proposal will stay on your credit bureau report for 3 years after you have completed all of the terms of your Proposal or 6 years from the date of filing, whichever comes first.

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 a consumer proposal or personal bankruptcy.

  • 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.

Will I lose my house in a consumer proposal

Just because you file a consumer proposal does not mean you will automatically lose your house.

Section 84.2(1) prevents secured creditors from repossessing assets solely because you filed a consumer proposal.

For Example: if you default on the payments for your mortgage then the bank can foreclose on your home.

If there is equity (your home is worth more than the mortgage debt on your home) then you will need to pay that equity to your Trustee for the benefit of your unsecured creditors. This equity will have be factored into the consumer proposal terms.

In some provinces, there is protection for some of the equity in your principal residence. However, there is no protection for equity in your principal residence if you live in New Brunswick, Nova Scotia or Prince Edward Island.

For Example: In Alberta, the first $40,000 of equity in your home is protected from unsecured creditors.

If you have any judgments secured against your house, most can be discharged/removed through a consumer proposal. So not only do you not automatically lose your house in a consumer proposal, but you may also be able to put yourself into a better position.

If you are having difficulty paying your debts you should contact a Trustee in Bankruptcy (Licensed Insolvency Trustee) to review your options and determine if a consumer proposal is worth it for you or if another option is more suitable.

Not Sure Where To Start? Get Your Free Review
Simply fill in the form below and our office will be in touch.

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

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 JohnMonctonFrederictonCharlottetownDartmouth, 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 debt or settle your debt for less than you owe and with no interest charges. A consumer proposal can be a good option vs other debt consolidation methods.

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.

Who do talk to about a consumer proposal? A Licensed Insolvency Trustee.

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

Will I lose my house if I go bankrupt

Question: Do you lose your home in bankruptcy?

You may be asking yourself ‘Do I lose my house if I go bankrupt?’. We have your answers.

You won’t lose your house if you go bankrupt if you continue making your mortgage payments. The bank cannot foreclose or repossess your house if the payments are current.

Section 84.2(1) prevents secured creditors from repossession assets solely because you file personal bankruptcy.

For example: if you default on the payments for your mortgage then the bank can foreclose on your home.

If there is equity (your home is worth more than the mortgage debt on your home) then you will need to pay that equity to your Trustee in Bankruptcy for the benefit of your unsecured creditors.

In some provinces, there is protection for some of the equity in your principal residence. However, there is no protection for equity in your principal residence if you live in New Brunswick, Nova Scotia or Prince Edward Island.

For example: In Alberta, the first $40,000 of equity in your home is protected from unsecured creditors.

So to answer “Do you lose your house in bankruptcy Canada” – the answer is likely not, but of course it is more complicating than that. If you are having difficulty paying your debts you should contact a Trustee in Bankruptcy (Licensed Insolvency Trustee) to review your options.

Many are concerned about obtaining a mortgage after bankruptcy. While it is harder, they are not unobtainable.

Not Sure Where To Start? Get Your Free Review
Simply fill in the form below and our office will be in touch.

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 a consumer proposal or personal bankruptcy.

  • 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 JohnMonctonFrederictonCharlottetownDartmouth, 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 debt or settle your 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. The debt eliminated also includes most, but not all, creditor judgments secured against any of your property.

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, especially if you have already declared bankruptcy in the past 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

Who to talk to about a Consumer Proposal

There are many companies in Canada that claim they can help you reduce your debt.  Whether they are profit-driven or not-for-profit organizations they each charge service fees to help you negotiate a repayment plan or settlement agreement with your creditors.   Some have contractual agreements with creditors spelling out the repayment arrangements that they will accept so there really are no negotiations taking place on your behalf.   You either fit into their model or they can’t help you.

The level of experience, training, and education with debt settlement and credit counselling companies can also be an issue.  Some have previous credit or collection experience while others have no experience other than the in-house training programs these organizations provide.  Many debt settlement and credit counselling companies do not have the capability or incentive to adequately explain the options of personal bankruptcy or consumer proposal.  Sometimes they refer to these aforementioned options as government debt relief programs which can be misleading. These are important options to understand before you decide what will work best for your situation.

A Licensed Insolvency Trustee (LIT) is regulated by the Federal Government to administer personal bankruptcy and consumer proposal filings.  Most Licensed Insolvency Trustees are also members of the Canadian Association of Insolvency and Restructuring Professionals and are subject to ethical standards and codes of conduct.  A Licensed Insolvency Trustee must complete a very comprehensive multi-year educational and experience program before obtaining a license to practice. Check out our article on what is a Licensed Insolvency Trustee to learn more about Trustees.

Trustees are professionals who are licensed and regulated by the federal government under the Bankruptcy and Insolvency Act (“BIA“). Most Trustees are also members of the Canadian Association of Insolvency and Restructuring Professionals (“CAIRP“), a national organization. Trustees must follow professional ethics and code of conduct rules and guidelines set out in the BIA and issued by CAIRP.

  • Your Trustee’s job is to administer your bankruptcy or consumer proposal following the Bankruptcy and Insolvency Act.

  • The Trustee is accountable to all parties involved in your bankruptcy or consumer proposal; you, your creditor and the Court.

  • The Trustee is required to administer your bankruptcy or consumer proposal in a fair and unbiased manner and to respect you and your creditors’ rights.

While Trustees are all governed by the Bankruptcy and Insolvency Act, not all are members of CAIRP. Like choosing a lawyer or accountant, you should be comfortable with your Trustee and how he/she interacts with you, explains your options and the process as it affects you. If you are not comfortable, you should contact another Trustee.

It’s important to understand that Trustees are the only professionals who can provide bankruptcy or consumer proposal services in Canada.

There are debt settlement companies and credit counselling companies that offer other debt solutions. None of these companies are regulated, and they do not have the power or authority of the Bankruptcy and Insolvency Act.

If you are considering using a debt settlement or credit counselling company, you should also contact a Trustee to understand how personal bankruptcy and consumer proposal work for you.

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, and you are asking yourself ‘is a consumer proposal worth it?‘ 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 a consumer proposal or personal bankruptcy. We will also help you understand which of your debts will be released in either option.

  • 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 debt or settle your 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. See the pros and cons of consumer proposal vs other debt consolidation options.

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 is, 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

Will you lose your car if you file bankruptcy

Similar to the question about if you will lose your house if you go bankrupt, just because you file a personal bankruptcy does not mean you will automatically lose your car.

Section 84.2(1) prevents secured creditors from repossessing assets solely because you filed personal bankruptcy.

Example: if you default on the payments for your car then the lending institution can repossess your car.

If there is equity (your car worth more than the loan against your car) then you will need to pay that equity to your Trustee in Bankruptcy for the benefit of your unsecured creditors.

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 a consumer proposal or personal bankruptcy.

  • 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 debt or settle your 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

Will they repossess my vehicle during a bankruptcy

Just because you file a personal bankruptcy the bank will not repossess your vehicle. Make sure you are current on your vehicle payments, so the bank can’t repossess your vehicle/car.

Section 84.2(1) prevents secured creditors from repossessing assets solely because you file personal bankruptcy.

For example: if you default on the payments for your car then the bank can repossess your car.

If there is equity (your car is worth more than the loan against your car) then you will need to pay that equity to your Trustee in Bankruptcy for the benefit of your unsecured creditors.

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 a consumer proposal or personal bankruptcy.

  • 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. In both options, most of your unsecured debt will be discharged upon completion.

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 debt or settle your 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

Will you lose your house in bankruptcy

Just because you file a personal bankruptcy does not mean you will automatically lose your house.

Section 84.2(1) prevents secured creditors from repossessing assets solely because you file personal bankruptcy.

Example: if you default on the payments for your mortgage then the bank can foreclose on your home.

If there is equity (your home is worth more than the mortgage debt on your home) then you will need to pay that equity to your Trustee in Bankruptcy for the benefit of your unsecured creditors.

In some provinces there is protection for some of the equity in your principal residence. However, there is no protection for equity in your principal residence if you live in New Brunswick, Nova Scotia or Prince Edward Island.

In Alberta, the first $40,000 of equity in your home is protected from unsecured creditors.

Click here to learn about what debts can be discharged in a consumer proposal or bankruptcy.

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 a consumer proposal or personal bankruptcy.

  • 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 JohnMonctonFrederictonCharlottetownDartmouth, 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 debt or settle your 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

Can Creditors Take My Home if I file for Bankruptcy

Creditors cannot seize your home just because you file personal bankruptcy.

Section 84.2(1) prevents secured creditors from repossessing assets solely because you filed personal bankruptcy.

Example: if you default on the payments for your mortgage then the bank can foreclose on your home.

If there is equity (is your home worth more than the mortgage debt on your home) then you will need to pay that equity to your Trustee in Bankruptcy for the benefit of your unsecured creditors.

In some provinces there is protection for some of the equity in your principal residence. However, there is no protection for equity in your principal residence if you live in New Brunswick, Nova Scotia or Prince Edward Island.

In Alberta, the first $40,000 of equity in your home is protected from unsecured creditors.

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 a consumer proposal or personal bankruptcy.

  • 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 JohnMonctonFrederictonCharlottetownDartmouth, 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 debt or settle your 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