Bankruptcy New Brunswick, Canada - Options available to get out of financial problems in New Brunswick."

Options
If you experience debt problems or are simply starting to get behind in your payments, you are not alone! Thousands of people in New Brunswick and Canada share similar financial problems. As you explore alternatives to remedy your financial problems we wish to caution you that the information contained in this web site is intended as a general summary of your options. Every situation is unique. This site cannot explore every potential solution or describe every situation. For more information or to assess your unique situation we recommend you contact Allan Marshall & Associates Inc for a free consultation to discuss your options. The options listed below are intended to provide individuals with a variety of alternatives to remedy their financial problems depending on the severity of the situation. (Click here for Business options)
Evaluate your financial problem Improve your budgeting skills Reduce your expenses Increase your income Contact your creditors Convert Non essential assets to cash Refinancing Consolidation loan Informal proposal Credit Counselling Formal Proposals Bankruptcy
Evaluate your financial problems: It is important for any one experiencing financial problems, regardless of the their severity, to stop to evaluate their financial situation. Sometimes admitting you are experiencing problems with your finances is harder than the solution. When you evaluate your financial situation you are looking to answer two questions: 1) How severe is my financial problem? In most cases, the sooner you determine there is a financial problem the less severe the problem will be and the more options there will be available. To determine the severity of your financial problem you can start by making a list of all your monthly expenses such as, rent, hydro, telephone, groceries, insurance, gas, etc. (Your list should NOT include items such as bill payments like: Visa, Master Card, Lines of Credit, etc.) Once you have completed your list calculate your total monthly expenses and subtract it from your monthly income. Compare the balance of funds remaining to the amount you are required to pay monthly to your unsecured creditors such as Visa, Master Card, Lines of Credit, etc. The difference between the money available to pay your creditors and your required monthly payments will give you a strong indication of the severity of your financial problems. If the amount available is close to the amount required you may simply have to adjust your budget but if it is substantially different a more dramatic solution may be required. 2) What caused my financial problems? It is important to note finding the cause of a financial problem is at least as important as finding a solution, because if the root cause of the problem is not treated then the problem will simply continue to repeat itself. If the debt problems occurred because an individual did not prepare a budget and continually over spent, then getting a consolidation loan to pay off credit cards will not correct the problem long term because that individual will most likely continue to over spend. Improve your budgeting skills Creating a budget is an important part of creating a healthy financial lifestyle. Budgeting is about learning and controlling where your money is going. Budgeting helps you set priorities to accomplish realistic goals through financial planning. It is not about pinching pennies or going without. Budgeting can be the single most important financial thing you do as it controls all the financial aspects of your life. (Click this link for more detailed information on budgeting !) Reduce your expenses You should review your monthly expenses to see if there are any expenses that can be reduced or eliminated for a period of time. Reducing your recurring expenditures is a great way to increase your ability to pay down debts, or simply increase the amount of money you have to spend on other things. Everyone's situation and priorities are different but here are some suggestions which would allow you to reduce your monthly expenses and not cramp your life style. Daily Coffees - from chain stores 2 a day @ $1.20 / coffee ($72.00/month) Message manager on your phone ($5.00/month) Call display on phone ($5.00) Eating out for lunch - average $7.00 / day ($140.00) Simply using the above four examples you can save $222.00 / month to be used to get control of your debt. Please understand we do not suggest you cut every extra from your budget, we simply suggest you cut the unnecessary spending, at lease for a short period of time to help you bring your finances under control. Increase your income This option is not for everyone and may not be possible due to family commitments, conflicts with current employment or even your ability to find a second source of income. Increasing your income is however, not limited to a second job (full or part time) it could also be a roommate or boarder that would give you extra income. Contact your creditors If your situation has changed and you are unable to make your payments for a short period of time, call your creditors to explain the situation and suggest an alternate arrangement that might be mutually acceptable. You may be surprised how many creditors are willing to co-operate. Remember you won't know if your creditor is willing to work with you, through a troubling time, unless you contact them. Convert Non Essential Assets to Cash Converting Non essential assets to cash is the sale of assets for the purpose of using the sale proceeds for payments to creditors. You may have some stocks or bonds or even an extra vehicle you are willing to sell to enable you to make your payments. If you are considering selling assets for the purpose of paying your creditors we suggest you discuss this option with a professional like Allan Marshall & Associates Inc before you sell or cash the asset because certain assets are protected by law as exempt assets. Refinancing Refinancing your assets may be a possibility if you have equity in an asset. An example could be getting a second mortgage on a house and using the money received from the second mortgage to pay off your existing unsecured creditors like Visa, Master Card, etc. When considering this option you need to pay close attention to your budget to ensure you can afford to make the mortgage payments. (If you have not identified the original source of your financial problem this option may leave you in a more difficult situation.) We suggest you talk to a professional to discuss your option. Consolidation Loan Many financial institutions are willing to provide consolidation loans to pay off all your outstanding debts and, in return, you make one monthly payment on that loan. The lending institution's willingness to provide a consolidation loan will depend on your credit and income. You should compare rates at the different banks and lending institutions as rates vary. (If you have not identified the original source of your financial problem and continue to spend on credit, you may find yourself in a more difficult situation.) Informal Proposal This is a process where a debtor negotiates with their creditors to arrange payment terms. Creditors will usually require you to explain your situation to convince them they should consider your offer to settle the debt. Informal proposals are arrangements which might include making lower payments over a period of time until the amount is paid in full or even an agreement to pay less then the full amount in lump sum payments. If you are successful in negotiating an informal proposal you would be advised to get the new terms in writing. Informal proposals are usually the most effective when you have a small number of creditors with whom to negotiate. Informal proposals do have a number of difficulties: Getting all your creditors to agree No binding mechanism to force creditors to agree Creditors who have refused may continue to harass and take other collection actions. Credit Counselling Credit Counselling is a voluntary program between you and your creditors similar to an informal proposal. The difference is the credit counselling company attempts to negotiate the terms of your repayment and takes a fee from the proceeds you pay with their program. Credit Counselling does have a number of difficulties: Getting all your creditors to agree No binding mechanism to force creditors to agree Creditors who refuse or change their mind may continue to harass and take other collection actions. Creditor may continue to charge interest unless they agree to waive same. Affects your credit rating for a period of 3 years from the end of your credit counselling program. ( For example: if your repayment program is for five years your credit would rate as an R7 for a period of 8 years) With the consent of creditors a Credit Counselling Scheme will often help overburdened debtors. Care should be taken by debtors that they allow themselves sufficient income for a reasonable cost of living before committing to a payment schedule. (Before committing to a Credit Counselling program you should talk to a professional like Allan Marshall & Associates Inc. Consultations are without cost or obligation.) Formal Proposals A Formal Proposal is a legal procedure that allows individuals the ability to modify their payments to creditors by extending the time for payments or reducing the total amount to be paid, while at the same time stopping all interest. It is intended to provide a debtor with the ability to start over financially by eliminating most, if not all unsecured debts. A proposal is similar to an agreement through credit counselling only it is a legal process that instantly stops creditors and sets a predetermined period of time for the creditors to vote on the acceptance of the proposal. If a proposal is made and is accepted by creditors and approved by the Court, then the proposal is legally binding on all creditors whether they voted to accept the proposal or not. The cost of the proposal is often deducted from the contribution for creditors. For a proposal to succeed it must generally offer the creditors more then they would receive if the same individual were to file for Bankruptcy. Click this link for more detailed information on proposals! For a consultation about proposals at no cost or obligation contact a professional like Allan Marshall & Associates Inc. Bankruptcy Bankruptcy is a legal process available to honest individuals who are experiencing a financial crisis. The immediate benefits of bankruptcy is its stay of proceedings which stop's all legal actions, collection proceedings, harassment and even garnishments. The result of getting a discharge from bankruptcy is the releases of most, if not all, of the bankrupt's debts. Bankruptcy offers a person who would otherwise be unable to get themselves our of debt, the opportunity for a fresh start. Click this link for more detailed information on Bankruptcy! For a consultation about Bankruptcy at No Cost or Obligation contact a professional like Allan Marshall & Associates Inc.