Debt Relief in New Brunswick: Your Rights, Consumer Proposals & Bankruptcy (2026)

New Brunswick has a 2-year limitation period for debt collection and provides the strongest wage garnishment protection in Canada at 80%, matching Ontario. As Canada’s only officially bilingual province, New Brunswick residents have the right to receive debt collection services and file complaints in English or French.

Your Rights as a Debtor in New Brunswick

New Brunswick residents have specific consumer protections when dealing with debt collectors. The Financial and Consumer Services Commission regulates financial services including debt collection oversight across the province.

Established in 2013, the FCNB regulates approximately 44,000 industry participants including collection agencies. As Canada’s only officially bilingual province, you have the right to receive services in English or French including from collection agencies and regulatory authorities.

Collectors cannot use harassment, threats, or intimidation tactics. They cannot contact you at unreasonable hours or discuss your debt with unauthorized third parties. You have the right to request written communication only, dispute debts you believe are incorrect, and receive service in your choice of official language.

If a collector violates your rights, you can file a complaint with the FCNB online or by phone in English or French.

How Long Can Creditors Sue for Debt in New Brunswick?

Under New Brunswick’s Limitation of Actions Act, creditors have 2 years to commence legal action to collect most debts. The limitation period runs from the date of your last payment or the date you last acknowledged the debt in writing.

New Brunswick vs Atlantic Provinces

New Brunswick’s 2-year period matches Nova Scotia and provides earlier relief from legal action compared to PEI and Newfoundland residents who face 6-year exposure.

Once a debt becomes statute-barred after 2 years, creditors can still call and send letters, but they cannot successfully sue you in court. You can raise the limitation period as a legal defence if sued after the 2-year window has passed.

For more information on how limitation periods work across Canada, see our guide on the statute of limitations on debt in Canada.

Debts With Different Limitation Periods

Not all debts follow the standard 2-year rule:

• Credit cards and personal loans: 2 years
• CRA income tax debt: 10 years (federal rules)
• Federal student loans: 6 years
• Court judgments: Extended enforcement periods
• Child and spousal support: No limit

Making any payment or acknowledging the debt in writing restarts the 2-year clock. Be cautious about making “goodwill payments” on old debts near the limitation period.

How Much Can Creditors Garnish From Your Wages?

New Brunswick provides the strongest wage garnishment protection in Canada at 80%, matching Ontario. This protection comes from the Enforcement of Money Judgments Act, which came into effect December 1, 2019.

New Brunswick Wage Exemption Rules

• 80% of wages are exempt from garnishment
• Maximum garnishment: 20% of your wages
• Court determines specific amounts based on individual circumstances
• Additional protections for dependents considered

The 2019 legislation modernized New Brunswick’s enforcement rules and introduced wage garnishment after 40 years without it. The law includes strong worker protections including the 80% exemption, RRSP protection, and a 5-year sunset clause on garnishment orders.

How New Brunswick’s Garnishment Works

Courts have discretion to adjust garnishment amounts based on your financial circumstances, number of dependents, and other relevant factors.

New Brunswick vs Other Provinces

New Brunswick and Ontario provide the strongest wage protection in Canada. A New Brunswick worker earning $4,000 per month faces maximum garnishment of $800, while a Nova Scotia worker could lose $2,000 (50%).

Special Protections in New Brunswick

New Brunswick’s Enforcement of Money Judgments Act includes additional safeguards:

• RRSPs are totally exempt from seizure
• 5-year sunset clause: Garnishment orders expire after 5 years unless renewed
• Court discretion: Judges can adjust amounts based on individual circumstances
• Dependent considerations: Additional protections for families with dependents

Use our wage garnishment calculator to verify if your garnishment exceeds legal limits in New Brunswick.

What Are the Rules for Debt Collectors in New Brunswick?

The Financial and Consumer Services Commission enforces consumer protection rules for debt collection in New Brunswick.

Prohibited Collection Practices

Collectors in New Brunswick cannot:

• Use threatening, abusive, or intimidating language
• Make false or misleading statements about the debt or their authority
• Contact you at unreasonable hours (generally restricted to 7am-9pm weekdays)
• Discuss your debt with unauthorized third parties
• Harass you or your family members
• Misrepresent the amount owed or legal consequences
• Refuse to provide service in your choice of official language (English or French)

Your Bilingual Rights

As Canada’s only officially bilingual province, you have specific language rights:

• Right to service in English or French from provincial agencies
• Collection agencies should accommodate language preferences
• Court proceedings available in either official language
• FCNB complaint services available in both languages

If a collector cannot communicate in your preferred official language, document this as a potential complaint with the FCNB.

Your Rights When Dealing with Collectors

You have the right to:

• Request all communication be in writing
• Choose English or French for all communications
• Dispute the debt and request verification
• Ask the collector to stop contacting you
• Raise the limitation period as a defence if sued after 2 years
• File a complaint with the FCNB for violations

Debt Relief Options in New Brunswick

New Brunswick residents facing unmanageable debt have several options beyond waiting for the limitation period or dealing with collectors. Understanding your options helps you choose the best path for your situation.

The most common debt relief solutions available in New Brunswick include:

• Consumer proposals: Reduce total debt by 60-80% while keeping all assets
• Bankruptcy: Eliminate most debts if you have little income or assets
• Debt consolidation: Combine multiple debts into a single loan with lower interest
• Credit counselling: Work with a non-profit counsellor to create a debt management plan
• Debt settlement: Negotiate reduced lump-sum payments with creditors

Each option has different impacts on your credit, costs, and legal protections. Compare all debt relief options using our debt relief comparison tool.

Many Licensed Insolvency Trustees in New Brunswick offer consultations and services in both English and French to serve the province’s bilingual population.

Consumer Proposals in New Brunswick

A consumer proposal is a legal agreement administered by a Licensed Insolvency Trustee that reduces your total debt by 60-80%. Even with New Brunswick’s strong 80% wage protection, consumer proposals provide additional benefits and complete protection from collection action.

How Consumer Proposals Work

A Licensed Insolvency Trustee reviews your financial situation and proposes a settlement to your creditors. You typically pay 30-35 cents per dollar owed over 3-5 years through fixed monthly payments.

Once filed, a consumer proposal immediately triggers a legal stay of proceedings that:

• Stops all wage garnishment (including the 20% allowed under NB law)
• Halts collection calls and letters
• Prevents creditors from suing you
• Freezes interest charges
• Protects you throughout the proposal term

New Brunswick Consumer Proposal Statistics

New Brunswick’s lower cost of living compared to major urban centres often results in more manageable proposal payments and debt levels.

In Saint John, Moncton, and Fredericton, Licensed Insolvency Trustees offer free consultations in English or French to review your options and calculate potential proposal payments.

Benefits of Consumer Proposals

• Keep all assets including your home, car, and RRSPs
• Stop garnishment completely (not just limit it to 20%)
• Reduce total debt by 60-80%
• Make one affordable monthly payment
• Complete credit rehabilitation in 3 years after finishing payments
• Access services in English or French

Learn more about how consumer proposals work and calculate your potential payment using our consumer proposal calculator.

Bankruptcy in New Brunswick

Bankruptcy eliminates most debts through a legal process administered by a Licensed Insolvency Trustee. While more severe than a consumer proposal, bankruptcy may be the better option if you have little to no income or your debts exceed $250,000.

How Bankruptcy Works in New Brunswick

When you file bankruptcy in New Brunswick:

• Most unsecured debts are eliminated (credit cards, personal loans, medical bills)
• A legal stay of proceedings stops all collection action and garnishment
• You surrender non-exempt assets to the trustee
• You make income-based payments if your earnings exceed certain thresholds
• You attend two financial counselling sessions (available in English or French)
• You receive a discharge after 9-21 months for a first bankruptcy

New Brunswick Bankruptcy Exemptions

New Brunswick law protects certain assets from seizure in bankruptcy:

• $10,000 in home equity
• $6,500 in vehicle equity
• Household furnishings and personal effects up to $5,000
• Tools of trade up to $6,500
• RRSPs (except contributions in the 12 months before bankruptcy)
• Certain insurance policies and pensions

New Brunswick’s bankruptcy exemptions are moderate compared to other provinces. The province’s strong wage protection (80%) and RRSP exemptions provide significant safeguards during bankruptcy.

Bankruptcy impacts your credit more severely than a consumer proposal, with an R9 rating remaining on your credit report for 6-7 years after discharge.

For more details, see our comprehensive guide on bankruptcy in Canada.

Finding a Licensed Insolvency Trustee in New Brunswick

Only federally licensed trustees can administer consumer proposals and bankruptcies in New Brunswick. Find a Licensed Insolvency Trustee using the Office of the Superintendent of Bankruptcy directory.

Licensed Insolvency Trustees operate throughout New Brunswick including:

• Saint John – Largest city with multiple trustee offices
• Moncton – Major commercial centre serving southeastern NB
• Fredericton – Provincial capital
• Bathurst – Serving northern New Brunswick
• Edmundston – Northwestern NB near Quebec border
• Miramichi, Campbellton – Regional coverage

Most trustees in New Brunswick offer services in both English and French to serve the province’s bilingual population. Many now provide video consultations for residents in rural areas.

What to Expect at Your Consultation

During your free consultation, the trustee will:

• Review your income, expenses, assets, and debts
• Explain the difference between consumer proposals and bankruptcy
• Calculate estimated proposal payments or bankruptcy costs
• Discuss how New Brunswick’s 80% wage protection affects your situation
• Answer questions about timing and credit impacts in your preferred language
• Outline next steps if you choose to proceed

There is no obligation to proceed after a consultation. Use this opportunity to understand your options before making a decision. Request service in English or French based on your preference.

How to File a Complaint Against a Debt Collector

If a collection agency violates New Brunswick regulations or fails to provide service in your choice of official language, file a complaint with the Financial and Consumer Services Commission.

Filing a Complaint with the FCNB

Contact Information:

• Online: Submit a complaint
• Phone: 1-866-933-2222
• Services available: English and French
• Address: Financial and Consumer Services Commission, 85 Charlotte Street, Suite 300, Saint John, NB E2L 2J2

What to Document

Before filing a complaint, gather:

• Date and time of each contact
• Names of collectors you spoke with
• Recording of calls if possible
• Copies of letters and emails
• Details of prohibited practices (threats, excessive calls, unauthorized disclosures)
• Language accommodation issues if applicable
• Account numbers and creditor information

The FCNB investigates complaints and can impose penalties on collection agencies that violate provincial regulations or fail to respect bilingual service requirements.

Next Steps for New Brunswick Residents

New Brunswick’s 80% wage protection and 2-year limitation period provide strong consumer safeguards. However, if you’re facing garnishment or unmanageable debt, consumer proposals offer even stronger protection and debt reduction of 60-80%.

Recommended Next Steps

1. Calculate your options: Use our consumer proposal calculator to see how much debt you could eliminate and estimate monthly payments

2. Verify garnishment limits: Check if your wage garnishment exceeds New Brunswick’s legal limits with our wage garnishment calculator

3. Compare all solutions: Review the costs, benefits, and credit impacts of all debt relief options using our debt relief comparison tool

4. Consult a Licensed Insolvency Trustee: Book a free consultation in English or French to review your specific situation and understand which option provides the best outcome

Related Provincial Guides

• Nova Scotia debt relief guide – Compare New Brunswick’s strong 80% protection to Nova Scotia’s weak 50% exemption
• Prince Edward Island debt relief guide – See how PEI’s 6-year limitation differs from New Brunswick’s 2-year period
• Quebec debt relief guide – Compare Quebec’s 3-year limitation and bilingual services

New Brunswick’s 80% wage protection and 2-year limitation period provide strong consumer safeguards. As Canada’s only bilingual province, you have the right to debt relief services in English or French. Consumer proposals offer immediate legal protection and reduce debt by 60-80% while letting you keep all assets. Take action now to regain control of your financial situation.