What are the Risks to Debt Relief Options in Ontario?

Debt Relief Options in Ontario & The Risks

Debt relief can be a godsend to those who are struggling to manage their finances on their own.

There are a lot of options on the market that can help you with this, and many of them are perfectly designed to help you out of your position.

Alongside this, though, there can also be some risks that come with debt relief in a place like Ontario.

Here at Bankruptcy Canada, we’ve spent many years working with a broad range of clients and financial issues, and this has given us a deep insight into debt relief.

Our team can help you to find options that don’t come with any risks, but it’s important for you to understand the issues that can come with debt relief options that aren’t up to scratch, too.

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What To Look Out For With Debt Relief Options in Ontario

Having worked with people’s finances for so long, we know what to look for when choosing good debt relief options.

Most people don’t benefit from our experience, though, and this means that you might need some help when you’re going through this process.

Let’s take a look at some of the risks that come with debt relief.

This can be broken down into four areas; the law, the costs, your future, and the success of the options you’re looking at.

The Law

The law should always be on your mind when you’re dealing with your finances.

While you are unlikely to get into legal trouble as you go through this, it’s all too easy to leave yourself without adequate legal protection.

There are a couple of different areas that need to be covered when you’re thinking about this.

  • Professional Licensing

 

Your debt relief journey will be a lot easier when you have a professional to help you, but you need to make sure that those supporting you have the correct licensing in place.

Bankruptcy Canada is a fully-licensed insolvency trustee, and this means that we’re permitted by the Canadian Government to help our clients with both consumer proposals and filing for bankruptcy.

Without this background, you could find yourself working with companies that can’t legally provide you with the support you need.

 

  • Legal Protection

 

Legal protection can provide to be invaluable when you’re working to improve your finances.

Only filing a consumer proposal or filing for bankruptcy will give you a stay of proceedings, and this means that you could still find yourself in court if you’re using debt settlements or credit counselling to handle your debt relief.

 

  • Legally Binding

 

There are a lot of debt relief options on the market that aren’t legally binding.

For example, your lenders will still be able to harass you and file lawsuits against you when you’re using a debt management plan to handle your finances, as it won’t be legally binding.

Consumer proposals and bankruptcy are both legally binding, ensuring that you always know what is expected of you.

The Costs

The last thing you will want when you’re working to improve your debt will be spending loads of money on it.

Of course, though, there will always be some costs that come with processes like this, as you will be working with several groups that need to get paid along the way.

The debt relief option you choose will usually dictate the price you have to pay for it.

Debt settlements are one of the priciest options, with the companies that provide services like this having to make up for the high-risk nature of the job.

A debt management plan can be cheaper than a settlement, but you’ll struggle to find options that are more affordable than a consumer proposal or filing for bankruptcy.

Your Future

The whole reason you’re working to improve your finances is that you want a better future, and this means that you need to think about your future when you’re choosing the debt relief options you’ll be using to achieve this goal.

Your credit score is the most crucial element of this, with some debt relief options hurting the score you’ve worked hard to build.

Debt management plans can remain on your record for many years, while debt settlements and repeated loan applications can lower your score.

A consumer proposal will show up on your record for three years, while bankruptcy will show up for 7, but this doesn’t mean that they will necessarily impact your ability to get loans.

Their Success

Finally, as the last debt relief risk-factor to consider, it’s time to think about the success of the companies you work with.

There isn’t a standard formula that can be applied to fixing a person’s finances, and this means that professionals in this space have to use their knowledge and experience to support their clients.

If the people you’re working with don’t have the right skills, though, you could easily find yourself in a bad position.

Here at Bankruptcy Canada, we’ve had the opportunity to work on debt relief options with countless clients over the years, and have exactly what you need to start working towards financial freedom.

Our dedicated team can work with you to create budgets, manage your debt, and take serious action like consumer proposals or bankruptcy.

We pride ourselves on making this as easy as possible for the people we work with, taking the pressure off of your shoulders when you’re tackling your money problems.

We encourage anyone who wants to get work on their finances to get in touch with our friendly team.

You can call us at 1-877-879-4770 or send an email to Gordon@BankruptcyCanada.com, and we’ll be happy to provide you with confidential and obligation-free advice to get the process started.

We can support you through the entirety of your debt relief journey, from choosing your options to provide aftercare that will enable you to maximize your money.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?

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?

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