Filing for personal bankruptcy in New Brunswick is an extreme measure, but it can also be utilized at the right time and the right way to save you some money, preserve your peace of mind and get you on the right financial track. However, it’s also time-consuming and expensive, and can negatively impact your credit score, so it’s best to determine if it’s right for you.
Your Alternatives
If possible, it’s best to find an alternative to going bankrupt. While taking on a second/third job can be daunting and tiring, doing so for a few months can be enough to start paying down your debts. Likewise, you may consider building a budget that automatically pays some of the debt.
You can also make it easier by consolidating all of your unsecured debt into one large payment, that you gradually pay down as one bill.
Why Your Credit Score Is Important?
Your credit score can affect other areas of your life, including getting a car or home, applying for jobs and more. Your score will reflect the personal bankruptcy in New Brunswick, but can still be helpful for those in dire need.
When To File
The court system will look at your monthly income, so if you recently had a higher income month, it may be best to wait before filing, even if you lost your job. They’ll likely go back six months to a year, so timing it right is the best way to get a lower repayment plan or have your debt permanently wiped clean.
Tips Before Filing
Before filing for personal bankruptcy in New Brunswick, it may be best to sell some of your assets, as you’ll get more money than if the court/creditors seize them and sell them. However, don’t hide that money or try to spend it quickly. Likewise, don’t give away items worth money to avoid losing them or sell items to relatives, as the court can take back what you sold and sell it themselves. Visit Powell Associates Ltd.
