Often society has many different views on bankruptcy, but the most honest one is that it can really help people in their time of need. Even if the government is aware there will be some “unfavourable consequences” if they allow bankruptcy, it’s better than continuing to suffer and not be able to repay debts with interest. Sadly, just because it’s a good option should you find yourself in debt doesn’t make it any easier to do so. You’re going to have to go through a few steps before you can say goodbye for good.
Step 1: Start taking the necessary actions.
Deciding to take bankruptcy has a huge effect on future financial problems, so if you’re going to do this then it’s best to start as soon as possible. If you’re in debt, you need to gather all of your financial statements and make sure there’s nothing that will stop your bankruptcy. You can start with your recent statements and other documents, such as any emails or letters related to debts. If these don’t help you build a case for the court case, then find whatever evidence you can on social media and posts from banks or loan companies. If you’re not sure where to look, it’s best to start with the government, who will give you lists of all the people who’ve defaulted on loans.
Step 2: Contact your creditors.
Before you can apply for bankruptcy in new brunswick, you’ll first have to send letters and emails to every creditor you owe money. The process is similar, but there are different rules for each type of creditor: if it’s more than $350 and between 3-6 months old then it goes through the mail. If it’s more than $350 and between 6 months old and a year old then send them a letter before your filing date. If it’s older than a year then simply send them an email.
Step 3: Fill out the court papers.
You’ll need to fill out a lot of documents in order for your case to go through, but it’s possible to get creditors to pay their debts instead of you if you have strong evidence. You’ll need to give financial details and a list of all those involved; this could be from the beginning or from recently submitted statements. The last part is crucial, so mention how long they’ve had the debt and how much they owe in interest alone. It would also be appropriate to say that this debt is causing many problems for them such as work conditions and money problems.
Step 4: Make a payment arrangement.
Once the creditor has paid, you’ll be able to file for bankruptcy in new brunswick. The trustee will then be able to collect any debts without having to do anything about it, but will also make sure your creditors are paid as soon as possible.
What to do after declaring bankruptcy
After you’ve declared bankruptcy in new brunswick, there’s still going to be responsibilities you have to fulfill. You’ll have to start by contacting the trustee for your case and the court itself. After that, it’s best to contact all creditors again and ask them if they’ll accept a few payments over time so you can save money and repay your debts more quickly.
Before filing for bankruptcy, make sure you understand what rights your creditors have as opposed to your own. It’s also important that you understand how much debt relief can help you before making such a big decision. Although it’s not the easiest thing to do, it can end up saving you a lot of money and giving you the chance to start fresh.