People Are Charging for Bankruptcy Advice.
Being in debt can be a complicated and challenging situation—one where you can feel very financially and emotionally vulnerable.
In fact, people in this situation often worry about their friends and family finding out about losing valuable assets like homes and business and even having their wages garnished.
That is where the federal government takes money directly from your employer, then puts it towards your debt, leaving you with a lot less in your pay packet.
Of course, the last thing that you need when you find yourself in such a state is to have someone prey on your vulnerability.
Someone that asks for money in exchange for offering financial advice.
Sadly, this is a situation that occurs frequently.
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The reason being that there is a whole industry that has sprung up – debt consulting.
Yes, that’s right; some debt or credit consultants or counsellors charge people that are already struggling with debt for the advice they offer on bankruptcy.
They do not charge small sums, either!
Although the real rub is that all of this information is available for free from a Licensed Insolvency Trustee.
Fortunately, you can find out all about avoiding being charged a fee for such advice, and the benefits of working with an objective Licensed Insolvency Trustee in the post below.
Read on to find out more.
Licensed Insolvency Trustee vs. Debt Consultants
There are many professionals and people who work in fields that concern themselves with debt, finance, and bankruptcy, such as lawyers, accountants.
However, it is essential to note that lawyers, and accountants, cannot administer proposals or personal bankruptcies.
Debt consultants cannot either!
In fact, there is only one type of person legally licensed by the Canadian government to do this, and it’s a Licensed Insolvency Trustee.
The thing is that professionals such as lawyers and accounts that are bound by an ethical code, usually understand the harm that they can cause by providing advice on bankruptcy.
This is why they will recommend you call and speak to a trustee.
After all, accounts and lawyers may well have some knowledge in the field.
Still, they will not have the depth of understanding about it to make judgments for your particular case and inform you of how such action will impact you personally.
Unfortunately, debt consultants and credit counsellors often have no such scruples.
Instead, it is their whole aim to get you to come to them for bankruptcy and consumer proposal advice.
Even though they know full well that you will need to speak to a Licensed Insolvency Trustee.
Of course, the worst thing about this situation by far is that debt counsellors and credit consultants do not offer their services for free.
In fact, they will ask those already drowning in debt to pay a substantial fee for their services.
Unfortunately, such services are often not accurate or well suited to the individual client’s situation.
One of the biggest problems with credit counsellors is that they can seem authentic and helpful at first.
However, because what they are looking to get out of the situation is their consultation fee, those using their services can often fall prey to their scare tactics.
These may include being reminded about losing your assets, wage garnishment, and other people finding out that you are in debt.
Some credit counsellors even go so far as to suggest that Licensed Insolvency Trustees are not on your side when it comes to debt relief advice.
Which is a little silly when they are actually government-endorsed objective advisors.
Once you have coughed up the fee that the credit counsellor or debt consultant is looking for, do you know what they will do?
They will refer you on to a Licensed Insolvency Trustee, an objective expert that you could have consulted for free in the first place!
Why pay for what comes for free?
This situation is infuriating to those in the financial relief world that are looking to provide free and objective advice to those struggling with debt.
After all, why should people have to pay for something that they could get for free anyway?
Licensed Insolvency Trustees will be legally required to set out every debt relief option for free.
These options often also include ones where no bankruptcy or consumer proposal is filed.
Yes, that is right, if a Licensed Insolvency Trustees can help you rejig your finances to relieve your debt, they will.
With that in mind, if you are considering bankruptcy or a consumer proposal, then please make sure you avoid going to a debt consultant and being charged for the pleasure.
Instead, first, seek the advice of a Licensed Insolvency Trustee.
Contacting a Licensed Insolvency Trustee
Finally, if the fact that speaking to a Licensed Insolvency Trustee is free isn’t enough, remember that they are ethically trained and experienced in this area.
Oh, and don’t forget that Licensed Insolvency Trustees are the only ones qualified to start bankruptcy and consumer proposal proceedings, as well.
Happily, our Licensed Insolvency Trustees, who you can contact on 1-877-879-4770, pride themselves on being objective and empathetic.
They do not see their role as one of judgment, but one of support and finding the best-tailored solution to your debt problem specifically.
They can also tell you if none of these options are right for you and guide you on how to better manage your current budget to pay off your debts.
All you need to do is call or fill in the form below, and we will get back to you ASAP.
Although, no matter what you do, just remember that bankruptcy advice should come from a trustee, always.
That means if someone isn’t a Licensed Insolvency Trustee, it’s time to step away.
Otherwise, you could be adding to your debt woes, rather than resolving them.
Canadian Bankruptcies
How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?
