Pwc Debt Solutions Brochure

PwCDebtSolutionsTM

www.pwcdebtsolutions.com

Your Assets

Contact our office – Fredericton

The Bankruptcy and Insolvency Act and the laws of New Brunswick allow you to keep the following assets:

494 Queen Street, Suite 200 Fredericton, NB E3B 1B6 Tel: 506 459 8896 Fax: 506 457 7189

• Furniture, household furnishing and appliances reasonably necessary for the debtor and his family; • Food, clothing and fuel necessary for the debtor and his family; • Necessary tools and equipment and books to the value of $6,500 used in the practice of the debtor’s trade or profession;

Matthew Munro, Trustee 506 653 9426 [email protected] Wendy MacKinnon, Estate Administrator 506 653 9411 [email protected]

• One motor vehicle having a realized value of not more that $6,500 at the time the claim for exemption is made, or not more than any greater amount that may be prescribed, if the motor vehicle is required by the debtor in the course of or to retain employment or in the course of and necessary to the debtor’s trade, profession or occupation;

Shane Martin, Estate Administrator 506 459 8831 [email protected]

• Necessary medical and health aids; and

1 888 PwC Debt   or   1 888 792 3328

• All other assets declared exempt from seizure pursuant to any law, including pension plans, certain Registered Retirement Savings Plans and certain life insurance policies.

We understand the difficulty…

Julie Molasky, Estate Administrator 506 653 9401 [email protected]

Or call us toll-free:

Any remaining assets not specifically pledged in favour of a secured creditor will be sold by the Trustee and the proceeds will be distributed pursuant to the Bankruptcy and Insolvency Act.

The Next Step This brochure covers some of the common issues relating to Bankruptcy and Consumer Proposals for individuals. It does NOT address all relevant matters and other important factors that should be considered before making a final decision. We encourage you to discuss your financial difficulties with a qualified insolvency professional at PricewaterhouseCoopers Inc. If you would like to arrange a no cost, no obligation meeting to discuss your situation, please contact one of our representatives:

…and know what to do

© 2009 PricewaterhouseCoopers LLP. All rights reserved. “PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership, or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity.

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Financial Problems? Are you… • Experiencing constant harassment from creditors regarding overdue accounts? • Borrowing from one credit card to pay another? • Struggling to survive from one payday to the next? • Subject to legal action or garnishment of wages? • Making minimum payments on credit card accounts? • Exceeding your spending limit? • Having problems with health, family or job performance? Many people experience financial problems at some time or another. The good news is that many of these problems have solutions. The experienced financial counsellors at PricewaterhouseCoopers Inc. can help you in determining if any of the following strategies are appropriate for you and can assist you in the implementation of the one that suits your financial needs. • Debt consolidation loan; • Informal arrangements with creditors; • Filing a Consumer Proposal or Division I Proposal; or • Filing for personal Bankruptcy.

Debt Consolidation Loan If you have too many monthly payments, a consolidation loan might help. This is a loan that puts all of your debts together under one lower monthly payment. Generally, if you get a consolidation loan, you should not continue to use your credit cards or borrow from other lenders. If you do, your financial situation may once again become unmanageable.

Informal Arrangements with Creditors We can review your financial situation with you and advise you on negotiating with your creditors. Reasonable terms of repayment may be the best solution.

Consumer Proposals If your total debt, excluding your principal residence mortgage, is less than $75,000, you may file a Consumer Proposal. We will assist you in developing a plan which will be presented to your creditors who then vote on whether to accept your proposal. A Consumer Proposal can provide for repayment of less than the full amount of the total debt.

Division I Proposals If your debts exceed $75,000, a Division I Proposal may be filed. A Division I Proposal may also provide for payment of less than the full amount of the debt. A PricewaterhouseCoopers Inc. professional can assist you in exploring this option. Under either a Consumer or Division I Proposal, consumers are generally protected against garnishment, lease termination, loan accelerations and public utility disconnections as a result of filing a proposal. Wage assignments are also unenforceable after filing.

Personal Bankruptcy If your financial difficulties are very serious, and cannot be solved by making arrangements with your creditors, Bankruptcy may be the only alternative for you. In order to file for Bankruptcy, your debts must total more than $1,000 and you must be unable to pay them when they become due. Bankruptcy is designed to provide two major benefits: •T  o permit orderly distribution of a Bankrupt’s non-exempt assets among creditors without expensive and time consuming legal action; and •T  o allow the Bankrupt a fresh start without the burden of unmanageable debt.

Your Duties and Responsibilities Include: • Notify the Trustee of all assets and liabilities at the date of Bankruptcy; • Assist the Trustee in dealing with your affairs; • Attend a meeting of creditors to answer questions regarding your financial situation if required;

In addition, certain debts will remain payable after your discharge from Bankruptcy, including: • Court-imposed penalties and fines; • Alimony and maintenance payments; • Debts arising out of fraud, misrepresentations, etc.; and • Student loans, if the individual becomes bankrupt within seven years of being a student.

• Attend two counselling sessions;

The Length of Your Bankruptcy

• Keep the Trustee advised of your address, phone number and place of employment;

The Bankruptcy and Insolvency Act provides that, dependant upon income, first time individual Bankrupts may be automatically discharged in nine months from the date of filing their Bankruptcy. If the automatic discharge is opposed, the Court will decide whether a discharge will be granted and may extend the period of Bankruptcy and set other terms.

• Provide the Trustee with your books and records, such as tax returns, bank statements, etc.; and • Surrender all credit cards to the Trustee for return to the credit card company.

Contributions from Your Future Income You will be required to complete and file monthly statements of income and expenses during the period of Bankruptcy. The Trustee will use this information, together with government standards, to determine the amount – if any – to be paid into the Bankruptcy Estate during the Bankruptcy for the benefit of your creditors.

Credit Collection Proceedings Wage garnishees and most lawsuits are stopped once you declare Bankruptcy. Most creditors are required to deal with the Trustee.

Debts Not Affected by Bankruptcy Secured creditors are generally not affected by the Bankruptcy process. Secured creditors (e.g. a bank, finance company or credit union) may still proceed against pledged assets to recover debt once they have proven their security to the Trustee.

Co-Signed Loans Your filing for Bankruptcy does not release the responsibility of a person who co-signed your loan. He or she may be required to pay the debt.

Your Credit Rating Your credit record will contain information regarding your Bankruptcy or Proposal for approximately three to seven years. Creditors and lenders may review this information when granting new credit. You should notify credit reporting agencies of your discharge from Bankruptcy.

Trustee’s Fees In most circumstances the Trustee’s fees are set by government regulations under the Bankruptcy and Insolvency Act. In general, the Bankrupt is responsible for payment of Trustee fees prior to discharge. PricewaterhouseCoopers Inc. will arrange flexible terms for payment of these fees. These terms will be discussed with you during a meeting with a qualified insolvency professional at PricewaterhouseCoopers Inc.