Bankruptcy New Brunswick, Canada - Personal & Business information about financial problems in New Brunswick.

Additional Information
This page contains information on a variety of topics that we believe may be of benefit to individuals visiting our site. When faced with problems, many people are stressed and need a source of reliable information. Allan Marshall & Associates Inc recognize this need and have included the following as a part of our website in an effort to fill a void of information. Should you require additional information or wish to schedule a FREE information session please contact one of our offices.
Tips to Reduce Expenses Warning signs of financial problems New Brunswick Exempt Assets Student Loans Cashing a Government of Canada Cheque Trouble opening a bank account Credit Bureau
Tips to Reduce Expenses Reducing Expenses is an easy way to generate more money. By saving money on the little things you will have more money to spend on other things. This newly saved money can be used to keep bills up to date or saved for something more enjoyable. The following are some tips where everyone can save money. Saving money does not mean you reduce your quality of life it simply suggests being mindful of the little things can positively effect your budget. The following tips are broken down into helpful categories: Food Start with a shopping list Never grocery shop when you are hungry Plan your meals to avoid waste Plan less expensive meals (example: with less meat) Watch for sales on needed Items Stock up on non-perishable items when there is a sale Use coupons when available Avoid buying treats unless they are in your budget Cook and bake from scratch (prepared foods are usually more expensive) Buy in bulk when possible ( Make two items at once and freeze the second) Clothing Shop of quality items that will last (Price does not mean quality) Shop second-hand or consignment stores Plan your shopping around sales and end-of-season clearances Household Operations and Entertainment Make your own household repairs Make your own cleaning solutions mixing water and vinegar (half and half) Purchase used appliances that come with a warranty Reduce, reuse and recycle Monitor your long distance and change plans to meet your needs Turn the lights out behind you. Buy no name brand instead of name brands Conserve water ( Turn off the tap when you brush your teeth, wash full loads of laundry) Borrow from your library ( instead of buying books ) Plan to see movies on cheap night Transportation When possible walk or ride a bike instead of driving When possible use public transit Car pool with friends Use self-serve gas pumps Monitor your cars oil and tire pressure regularly ( To reduce maintenance costs) Shop for the best value on auto insurance Plan your trips to save gas Fill up your car when the price of gas is down Buy quality used cars At Work Bring your lunch, don't eat out bring your snacks don't use vending machines Take your own coffee to work Start a lunch pool (one person brings enough for the others once a week.) Warning signs of financial problems The following is a list of possible indicators of current or future financial problems. If you can relate to any of the following you should take steps to correct the problem before it develops into a serious financial problem. You continually go over your spending limit You use your credit cards as a necessity rather then a convenience You are always borrowing money to make it from one payday to the next You only pay the interest or minimum charges on you monthly bills You have not been reducing your overall debt over many months Creditors are harassing you for payments Utility companies have or are threatening to cut off services Your credit cards are at their maximum limit You owe money for your taxes and are unable to pay Your financial situation is affecting other areas of your life (health, family, etc) You have a bad credit rating The bank has turned you down for a consolidation loan Assets have been seized by an unpaid creditor Your business is failing an you guaranteed business debts You are currently unemployed and have no funds to pay your previous debts. If any of these sound familiar you should to talk to a professional. For a free consultation to discuss your alternatives contact Allan Marshall & Associates Inc. We can help! New Brunswick Exemptions The following assets are exempt from liquidation to compensate creditors: (unless a creditor holds a purchase money security interest) Furniture, household furnishings and appliances used by the debtor or a dependent to a realizable value of $5,000 One motor vehicle having a realizable value of not more than six thousand five hundred dollars at the time the claim for exemption is made, if the vehicle is required by the debtor for employment, to retain employment, for the debtor's trade, profession or occupation and/or for transportation to a place of employment where public transportation is not reasonably available. Necessary tools, equipment and books to the value of $6,500 used by the debtor in their trade or profession (Tools of Trade) Necessary medical and health aids Pension plans Food, clothing and fuel necessary for the debtor and his family Two horses and sets of harness, two cows, ten sheep, two hogs and twenty fowl, and food therefor for six months Necessary seed grain and potatoes required for planting purposes to the following quantities: forty bushels of oats, ten bushels of barley, ten bushels of buckwheat, ten bushels of wheat and thirty-five barrels of potatoes Pets belonging to the debtor Student Loans Canada Student Loans The current requirement is that a student loan be in excess of 7 years old before it can be discharged under the Bankruptcy and Insolvency Act. Effective May 11, 2004 Students who declare bankruptcy while still students are now eligible for the following benefits: • Possibly continue to receive student loans for a further 3 years to complete their studies. • Retain their interest free status while students • Apply for interest relief • After interest relief may apply for debt reduction For more information as to availability of these benefits you may contact: National Student Loan Services Centre Public Institutions Division 1-888-815-4514 Private Institution Division 1-888-587-7452 Cashing a Canadian Government Cheques. A Canadian Bank that provides teller services to the public must cash Canadian Government Cheques without charging a fee, even if you do not have an account at the bank or branch as long as: The cheque is for $1,500 or less; AND You are able to produce acceptable identification (see list below) The Bank may refuse to cash a Canadian Government cheque if you are unable to produce acceptable identification or it believes any of the following statements are true: The cheque is counterfeit; OR The cheque has been altered; OR The cheque is associated with a fraud or crime. If the Bank refuses to cash your Canadian Government cheque, even though you have complied with the above requirements, the Bank is required to provide you with written notice of their refusal to cash the cheque. If you disagree with the bank's reason for not cashing your Canadian Government Cheque you should ask the bank for a copy of their complaint handling process. If you are unsuccessful in resolving your concerns with the bank you should contact the Financial Consumer Agency of Canada (FCAC) as they supervise the banks to ensure they comply with the applicable Canadian Banking Laws and Regulations. For a PDF version of the Financial Consumer Agency of Canada's brochure on "Cashing Your Government of Canada Cheque for Free" (click here). Contact Information for Financial Consumer Agency of Canada (FCAC) Telephone: 1-866-461-FCAC (3222) Fax: 1-866-814-2224 Mail: 427 Laurier Avenue West, 6th floor Ottawa, Ontario K1R 1B9 Acceptable Identification to cash a government of Canada cheque. TWO PIECES of identification may be required from the list below: (note your identification does provide both your photograph and signature.)* A valid Canadian drivers licence A valid Canadian Passport Valid citizenship or permanent resident cards / papers A Canadian Birth Certificate A Valid Canadian Social Insurance Number Card (SIN) A valid Canadian Old Age Security Card A valid Canadian Certificate of Indian Status card / papers A valid Provincial health card A valid Provincial document or card with your signature and photo. An employee identity card with photo from a well known employer in your community (Other Identification may also be acceptable to cash a Canadian Government Cheque. To acquire a complete list you should contact your local government office. Please be advised there are some pieces of identification contained on this list that may be offered as identification but can not be required by the financial institution.) Trouble opening a Bank account Opening a Bank Account: A Canadian Bank that provides personal banking services to the public must open a personal bank account as long as you comply with the following and valid reasons for refusal do not apply. You request to open a bank account in person, at a location where personal bank accounts can be opened. You provide the bank with the following information your name date of birth address, (if any) occupation, (if any) You produce acceptable identification to verify your identity. You agree to let the bank verify your identification ( if the bank requests it) You agree to allow the bank to conduct a search to confirm there are no valid reasons to refuse to open a bank account ( if the bank requests it). This may include contacting a credit reporting company. Reasons for Refusal: The Bank may legally refuse to open a Personal Bank Account if it believes any of the following apply to you: The bank has reasonable grounds to believe you will use the account to break the law. In the past seven years you have previously committed a crime against a financial institution. The bank has reasonable grounds to believe you provided false information to open a bank account. The bank has reasonable grounds to believe opening the account would expose its employees or other customers to physical harm, harassment or other abuse. New Regulations The banking laws have changed and a bank can no longer refuse to open a personal bank account on any of the following grounds: you do not have a job you are or have been bankrupt you are not depositing any money in the account. ( The bank may however can ask you to deposit enough money in your new account to cover any applicable costs, such as the cost associated with ordering cheques.) If the Bank Still Refuses to open an account: If you the Bank refuses to open a personal bank account, even after you have complied with the above they are required to provide you with written notice of their refusal. Disputing Banks Decision: If you disagree with the banks reason for not opening a personal bank account you should ask the bank for a copy of their complaints handling process. If you are unsuccessful resolving your concerns with the bank you should contact the Financial Consumer Agency of Canada (FCAC) as they supervise the banks to ensure they comply with the applicable Canadian Banking Laws and Regulations. For a PDF Verson of the Canadian Bankers Association's brochure on "Resolving Problems with Your Bank" (click here). Brochure on Opening a Bank Account: For a PDF Versoin of the Financial Consumer Agency of Canada's brochure on "Opening a Personal Bank Account" (click here). Refusing a Credit Check: If you do not let the bank check your credit report because you do not feel it necessary based on the type of account you have requested and the bank refuses to open the account you should contact the banks complaints department and the FCAC to have the decision reviewed. Contact Information for Financial Consumer Agency of Canada (FCAC) Telephone: 1-866-461-FCAC (3222) Fax: 1-866-814-2224 > Mail: 427 Laurier Avenue West, 6th floor Ottawa, Ontario K1R 1B9 Acceptable Identification You will be required to produce TWO PIECES of identification from the list below or ONE piece of identification containing both your photograph and signature if your identity can be confirmed by a client in good standing with the bank or an individual in good standing in that community. A valid Canadian drivers licence A valid Canadian Passport Valid citizenship or permanent resident cards / papers A Canadian Birth Certificate A Valid Canadian Social Insurance Number Card (SIN) A valid Canadian Old Age Security Card A valid Canadian Certificate of Indian Status card / papers A valid Provincial health card A valid Provincial document or card with your signature and photo. An employee identity card with photo from a well known employer in your community (Other Identification may also be acceptable to cash a Canadian Government Cheque. To acquire a complete list you will need to contact your local government office. Please be advised there are some pieces of identification contained on this list that may be offered as identification but can not be demanded by the financial institution. Credit Bureau How does the Credit Bureau work? The Credit Bureau collects information available though public and government records as well as information reported to them by your creditors. All the information is gathered together in a report called a "credit report" and is sold to your creditors. Your creditors often requests this type of information to help with decision making when reviewing loan applications. What information is on a credit report? Personal identification - name, address, birth date, Social Insurance Number (SIN) Inquiries - a list of those who have requested a copy of your credit report Public Record Information - Judgements, Bankruptcy, Secured loans Third Party collection - Information about debts being collected by third parties Trade information - Payment history and rating (R0 - R9) Consumer Statements - A statement you wish to post along with your credit report. How long does the Credit Bureau keep information on my credit file? CREDIT INQUIRIES: An inquiry made by a Creditor will be kept on your credit report for three (3) years from the date of inquiry. CREDIT HISTORY and BANKING INFORMATION: A credit transaction is kept on the system for a period of six (6) years from the date of registration. CREDIT COUNSELLING and VOLUNTARY DEPOSIT: The system keeps record of a voluntary deposit or credit counselling program for a period of three (3) years from the date of last payment or the conclusion of the Credit Counselling Program. CONSUMER PROPOSAL: The system keeps record of a registered consumer proposal for three (3) years from the conclusion of the Proposal. BANKRUPTCY: In the case of a first time bankruptcy the system keeps record of a bankruptcy for six (6) years from the date of discharge. In the case of multiple bankruptcies the system keeps notice of bankruptcy for fourteen (14) years from the date of last discharge. JUDGMENTS AND SEIZURES: The system keeps record of any judgments or seizures for a period of six (6) years. COLLECTION ACCOUNTS: The system keeps record of any accounts that were put into collection for a period of six (6) years from the date of last activity. SECURED LOANS: Record of secured loans are keep in the system for six (6) years from the date the loan was filed with the credit bureau. What does your credit rating mean? R0. Too new to rate. R1. Pays account on time, usually within 30 days R2. Pays more then 30 days past the due date but less then 60 days. R3. Pays more then 60 days past the due date but less then 90 days. R4. Pays more then 90 days past the due date but less then 120 days. R5. Account is more then 120 days past the due date but had not been reported as bad debt (R9). R6. This code is not currently used. R7. Regular payments are being made through a proposal, credit counselling, orderly payment R8. There has been a foreclosure, repossession or voluntary return of an asset by a debtor R9. Bad Debt: account placed with collection, declared Bankruptcy, or are unable to be located. Tips about your credit rating: You must give permission to anyone who wishes to review your credit information. Check your credit rating to be sure the information being reported about your is accurate. You are entitled to a free copy of your credit report. You have the right to include a 100 word statement on your credit report. This will be provided to anyone who requests a copy of your report. If you choose to include a statement keep it short so creditors will take the time to read it. Obtaining a copy of your credit report. If you would like a copy of your credit report you should contact one of Canada's credit bureaus for a free copy. To obtain a copy of your credit report you will need to send a request by fax or mail along with two pieces of identification. In a few weeks you will receive a copy of your credit report in the mail. Although Credit bureaus are required to provide you with a copy of your credit report free of charge, many provide access to your credit report "on line" for a small fee. (Please note: The Credit Bureaus will not provide any information about your credit report over the telephone. We suggest you do not phone.) Contact information for Canada's main credit bureaus Equifax Canada Inc. Trans Union Canada Box 190 Jean Talon Station 709 Main Street W. Montreal, Quebec Suite 3201 H1S 2Z2 Hamilton, Ontario Tel: (514) 493-2314 L8S 1A2 1 800 465-7166 Tel: 1-800-663-9980 Fax: (514) 355-8502 Fax: (905) 527-0401 www.Equifax.ca www.Tuc.ca Errors detected on your credit report. When you receive your credit report it will include a form that will explain how to file disputes and have corrections made to your credit file. This can be a difficult procedure where persistence and a fighting attitude may be required to achieve results. The first step to correct inaccurate information on your credit report is to complete the appropriate forms supplied by the credit bureau. The next step is to contact the creditor or other source of the information and request they correct the inaccurate information reported on your credit report. If these steps fail, you should contact the local complaint department of the better business bureau and department of consumer services. (You can find contact numbers for these departments in the blue pages of your local telephone book) If you are still unsuccessful in getting the inaccurate information removed from your credit bureau you may be forced to threaten to sue for libel. ( Please be advised information on your credit report that is correct you will not be able to remove.)