New Brunswick Consumer Proposal Guide:
Protect Your Assets & Eliminate Debt
Consumer Proposal New Brunswick: Debt Relief in NB
A Consumer Proposal in New Brunswick is a formal, legally binding debt settlement program governed federally under Part III, Division II of the Bankruptcy and Insolvency Act (BIA) and administered in alignment with NB Memorials and Executions Act asset regulations. It enables residents across Moncton, Saint John, Fredericton, Dieppe, Miramichi, Edmundston, Bathurst, and Campbellton to reduce unsecured debt by up to 80% through zero-interest monthly payments, administered by an OSB-registered Licensed Insolvency Trustee (LIT).
Legal Debt Settlement & Asset Protection in New Brunswick
An NB Consumer Proposal consolidates your eligible unsecured debts into a single, fixed monthly payment spread over up to 5 years (60 months) with zero ongoing interest charges. Unlike informal debt settlement agencies or high-interest consolidation loans, a proposal provides immediate federal legal protection against all collection actions.
Because New Brunswick provincial law offers no statutory bankruptcy exemption for home equity, filing for personal bankruptcy puts real estate directly at risk. A consumer proposal provides a crucial legal alternative—enabling homeowners, farmers, fishers, tradespeople, contractors, and wage earners across NB to protect their homes, vehicles, fishing gear, and work equipment while wiping out credit card debt, personal lines of credit, and CRA tax liabilities.
Protecting Your NB Home & Assets under Provincial Law
For homeowners in Moncton, Saint John, Fredericton, and across New Brunswick, protecting real estate equity is the primary concern when evaluating debt relief. Under the NB Memorials and Executions Act, there is no provincial exemption for real estate equity in personal bankruptcy.
If you own a home with net equity, personal bankruptcy requires you to pay that net equity in cash to the bankruptcy estate or forfeit the home to the trustee for realization. In contrast, a consumer proposal guarantees 100% asset retention—allowing you to keep your home completely untouched while factoring that equity value into an affordable, interest-free monthly offer made to your creditors.
How NB Home Equity & Assets Are Handled
Comparing real estate protection under Personal Bankruptcy vs. Consumer Proposal
Bankruptcy in NB
New Brunswick provides no home equity exemption. You must pay 100% of your net home equity in cash to the bankruptcy estate or forfeit the home to the trustee for realization.
Consumer Proposal in NB
Keep your home 100% untouched. Equity is simply factored into an affordable, zero-interest monthly payment schedule agreed upon with your unsecured creditors over up to 60 months.
Want to calculate your exact home equity and confirm your NB asset protections?
Book Free ConsultationNB Asset Exemption Limits (2026 Guidelines)
When structuring a consumer proposal in New Brunswick, your Licensed Insolvency Trustee uses provincial standards under the Memorials and Executions Act as a benchmark:
2026 NB Bankruptcy Exemptions & Proposal Protections
Asset exemption limits under the NB Memorials and Executions Act and Federal BIA Law
| Asset Category | 2026 NB Exemption Limit | Consumer Proposal Protection |
|---|---|---|
| Principal Residence | $0 Exemption (No statutory limit) |
100% Retained Excess equity is amortized into your affordable monthly payment. |
| Primary Motor Vehicle | $6,500 in resale equity |
Keep Your Vehicle Financed/leased vehicles retained by maintaining regular payments. |
| Household Goods & Furnishings | $5,000 total realizable value | Basic home furnishings and appliances remain fully protected. |
| Tools of Trade & Equipment | $6,500 in equipment & tools | Essential tools, trade gear, and equipment remain untouched. |
| Farming & Fishing Equipment | $6,500 in gear & machinery | Active agricultural and fishing operations receive statutory protection. |
| Food, Fuel & Necessary Clothing | 3 months food & fuel / Necessary clothing | Essential family supplies and heating fuel are completely exempt. |
| RRSPs, RRIFs & Pensions | 100% Protected (Federal BIA) | Retirement savings protected (excl. last 12 mo. contributions). |
Excess equity is amortized into your affordable monthly payment.
Financed/leased vehicles retained by maintaining regular payments.
Resolving CRA Tax Debts in New Brunswick
Tax debt is a major issue for self-employed contractors, small business operators, and workers across New Brunswick. If you owe personal income tax, HST, or unremitted payroll deductions, the Canada Revenue Agency (CRA) possesses aggressive powers—including freezing bank accounts and garnishing employer wages without a court order.
Resolving CRA Tax Debt in New Brunswick
Unregulated debt management or credit counseling agencies cannot legally force the CRA to compromise on your tax principal.
An OSB-registered Licensed Insolvency Trustee is the ONLY professional legally authorized to file a CRA tax proposal under the BIA. The CRA is treated as an unsecured creditor. Once approved by a simple majority vote, the proposal LEGALLY BINDS THE CRA—reducing tax principal, stopping penalties, and freezing ongoing interest charges.
Stopping Wage Garnishments & Court Executions in NB
Under NB civil enforcement laws, judgment creditors holding an execution order can garnishee employment wages or freeze bank accounts at chartered banks and credit unions.
Immediate Federal Legal Protection:
The moment an OSB-registered Licensed Insolvency Trustee files your consumer proposal with the federal government:
- An immediate Stay of Proceedings takes effect under BIA federal law.
- Official legal notice is served on creditors, collection agencies, employers, and the CRA.
- All active wage garnishments, bank account freezes, and collection phone calls must cease immediately.
Consumer Proposal Rules across New Brunswick
Whether you live in Moncton, Saint John, Fredericton, Dieppe, or northern New Brunswick, the legal mechanics follow strict federal rules under the BIA:
- Qualification Threshold: You must owe at least $1,000 and no more than $250,000 in unsecured debt (excluding your primary mortgage).
- Predictable Monthly Payments: You pay one fixed amount for up to 60 months. Your payment never increases, even if your income grows.
- Credit Rating Recovery: Results in an R7 credit rating, which is removed from credit reports 3 years after full completion (or 6 years from filing date, whichever is sooner)—allowing faster credit recovery than personal bankruptcy.
How the NB Consumer Proposal Process Works
5 Steps to Becoming Debt Free
How a New Brunswick Consumer Proposal resolves your debt under federal protection
Free Consultation
With an NB Licensed Insolvency Trustee (LIT)
File Proposal
Triggers a Stay of Proceedings to stop collections instantly
Creditor Approval
Simple majority rule makes terms binding on all creditors
1 Fixed Monthly Payment
Zero interest, no hidden fees, locked in for up to 5 years
100% Debt Free!
Certificate Issued: Official discharge releases you from remaining debt
Connect with an OSB-Licensed Insolvency Trustee in New Brunswick
Take the first step toward financial freedom. Schedule a free, confidential consultation with a local NB-licensed trustee.
Find Your Personal Debt Relief Solution
Licensed Insolvency Trustees are here to help. Get a free assessment of your options.