www.pwcdebtsolutions.

com PwCDebtSolutionsTM
Your Assets Contact our office – Fredericton
The Bankruptcy and Insolvency Act and the 494 Queen Street, Suite 200
laws of New Brunswick allow you to keep the Fredericton, NB E3B 1B6
following assets: Tel: 506 459 8896
Fax: 506 457 7189
• Furniture, household furnishing and appliances
reasonably necessary for the debtor and his Matthew Munro, Trustee
family;
• Food, clothing and fuel necessary for the
506 653 9426
matthew.j.munro@ca.pwc.com We understand
debtor and his family;
• Necessary tools and equipment and books to
Wendy MacKinnon, Estate Administrator the difficulty…
506 653 9411
the value of $6,500 used in the practice of the wendy.j.mackinnon@ca.pwc.com
debtor’s trade or profession;
• One motor vehicle having a realized value of Shane Martin, Estate Administrator
not more that $6,500 at the time the claim 506 459 8831
for exemption is made, or not more than any shane.d.martin@ca.pwc.com
greater amount that may be prescribed, if the
Julie Molasky, Estate Administrator
motor vehicle is required by the debtor in the
506 653 9401
course of or to retain employment or in the
julie.m.molasky@ca.pwc.com
course of and necessary to the debtor’s trade,
profession or occupation;
Or call us toll-free:
• 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.
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
…and know
one of our representatives: what to do

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refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership, or, as
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firms of the network, each of which is a separate and independent legal entity. 5527-0409
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;
• Attend two counselling sessions;
• Keep the Trustee advised of your address,
phone number and place of employment;
• 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.
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.
The Length of Your Bankruptcy
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.
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.