Debt Consultants – The scary side of debt

I feel like I’ve met with an increasing number of people in our Brantford office lately who tell me that they’ve come to us becuase they spoke to someone who was promising to take care of their debts, but… it just didn’t feel right.

An increasing number of debt consultant or debt settlement companies have sprung up in Ontario in the last few years hoping to make a profit from people struggling to deal with debt problems.

It seems some are more reputible than others. 

If someone is promising to help you with debts and they are reputible, such as a trustee, consumer proposal administrator or a non for profit credit counsellor, they won’t charge you an up front fee for the professional advice they give you.

They’ll also offer to meet you in person and they’ll be happy to discuss all your options with you. (they won’t just try and sell you one product/option).

Here’s what you won’t get from a debt consultant:

• Legal protection
• An immediate ‘stay of proceedings’ (this means, by law, creditors immediately have to stop collection activity against you)
• An immediate halt to consumer debt wage garnishments
• A plan that all creditors have to accept, even if all the creditors don’t agree
• A debt solution recognized under Canadian law

A Consumer Proposal offers all the above and can only be filed with an administrator of Consumer Proposals from a trustees office.

Dealing with debts can be scary.  It’s becoming harder to know who you can trust to help you in these difficult times.  Just remember the points mentioned above and ask questions… you have a right to know exactly what will happen with your money and what will happen to your debts.  Just because a company pay’s to advertize on the radio or makes a fancy looking website, does not mean they are reputible or are going to be looking out for your interests.  

• Ask them if they’re charging an up front fee? (The answer should by no)
• Ask them who they are licenced or regulated by? (The answer should be the office of the superintendent of bankruptcy)
• Ask them if they’ll refer you to someone else? (The answer should be no)
• If they’re offering you a Consumer Proposal, ask them if the company has a trustees licence or if their “court officer” works for the same company? (The answer should be yes)

If you ask these questions and you’re uncomfortable with any of the responses you get back, you might want to consider walking away and dealing with someone else (even if its not us you turn to…!)

• We do offer a free consultation
• We don’t “sell” you anything
• We don’t pressure you to sign anything
• We don’t charge up front fees
• We do explain ALL your options
• We treat you with respect and courtesy
• We help you decide on the best options available to deal with your debts

Call us today and let’s get started.  We can start with a simple phone call.  Our Brantford number is (519) 770 4440 and you can always email us too if you prefer email.

Tagged as: Consultation, Consumer Proposal, Debt, debt negotiation, Proposal, Settlement, trustee