Credit Counsellors vs. Trustees.

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Are there advantages for a person using the services of credit counsellors vs. Trustees? Let’s consider the facts and then you decide. Remember, that your objective is to get out of debt and re-establish a good credit rating in an honourable and cost-effective way, as quickly as possible.

Key Considerations.Credit Counsellors.Trustees: Bankruptcy or a Consumer Proposal.
When will my debt be erased from the credit bureau?3 years after the debt is repaid.Bankruptcy: 6 years after the
discharge. Proposal: 3 years
after the Proposal is satisfied.
Can I pay back less then I owe and have the rest of the debt erased?Only in rare circumstances.Yes.
Once I make a plan with a credit counsellor or file for bankruptcy or a consumer proposal, will my creditors, including CRA, be forced to stop all actions against me including trying to collect money; phoning me; garnisheeing my wages or repossessing my assets?NoYes.
Which will give me a better credit rating?In most circumstances a
bankruptcy or proposal will give you a better credit rating, in a shorter time, and at a lower cost.
Can income tax debt and other CRA debt be included and eventually written off?No.Yes.
Is the advice given without a conflict of interest and in my best interest?Some so called “non-profit” credit counsellors are funded by banks and other credit grantors so there can be a conflict of interest.Yes.
What training and education do credit counsellors and trustees in bankruptcy have?There are no set standards.Most trustees have accounting
degrees and all must complete and pass a rigorous 3-year course and be investigated by the RCMP. Ongoing training is mandatory.
Are they regulated?No.Yes, by the Federal Government.
What kinds of plans are offered?Payment plans, where monthly
payments are made, which are
distributed to the creditors.
Bankruptcy and two kinds of
Which is cheaper?A bankruptcy or a proposal is usually cheaper.
Is Government approved Credit Counselling offered?In some cases.Yes.
What if I have a dispute?There is no dispute mechanism in place.You have the right to have your dispute mediated.