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What is personal bankruptcy?

Filing for bankruptcy in Moncton NB is not something that anyone wants to go through; most people don’t even want to think about it. Although bankruptcy is something to avoided if at all possible it is something that actually makes sense for some people. It is an option that can be used for solving unmanageable debt problems and it can provide immediate relief from the pressures applied by debt collectors.

Bankruptcy is a legal method that can be employed to eliminate all, or almost all, debts. Bankruptcy is administered by a trustee that is licensed by the federal government, the trustee is charged with the responsibility of ensuring that an unfortunate debtor is given the opportunity to start afresh as well as looking after the rights of the creditors. When someone files for bankruptcy they turn all of their non-exempt assets over to the trustee, the trustee in turn sells the assets and distributes the proceeds equitably between the creditors. At the end of the process the bankrupt is left with his or her exempt assets but more importantly for most, all their debts are eliminated. Exempt assets include clothing, household furnishings, tools that are needed for work and a vehicle; the vehicle can only have a value up to a certain limit.

Although bankruptcy is often seen as a last resort, there are benefits to filing for bankruptcy in Moncton NB. Not only will you be given considerable debt relief you will also be protected from any legal actions that creditors may attempt to make, your debts will be eliminated, there will be no more collection efforts made, it stops any wage garnishment and gives you an opportunity to take advantage of professional debt counselling so that you can better manage your financial affairs in the future.

After filing for bankruptcy the available assets are turned over to the trustee, the trustee disposes of the assets; the money will eventually be distributed to the creditors of record. Under certain circumstances the bankrupt is obliged to make a contribution towards the bankruptcy plus a payment based on any surplus income.

Although bankruptcy is a legal process, the fact that the bankrupt loses his or her non-exempt assets is not a form of punishment, bankruptcy is designed to clear the way to a new, clean, fresh future. You will be allowed to keep certain assets that will help as you start a new debt free life and you will never have to worry about creditors trying to collect on the debt owed them.

Bankruptcy in Moncton NB is not something that anyone wishes to happen to them but there are times when it is a valid solution to overwhelming debt problems. As you will need a bankruptcy trustee when you file you are invited to contact Powell Associates Ltd.

 

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