Are you wondering who to turn to when you need help with debt in Canada and your credit rating is too low to consolidate your debts? There are many diverse options out there, each with their benefits but also considerations. Some options may work better for unique situation over others.
First, there is an entire industry of credit counsellors, debt management consultants and other similarly-focused organizations. Some may charge a fee, while others may not. Keep in mind that most provinces do not have any licensing requirements for these firms, although some provincial governments are now passing legislation restricting the allowable fees and other charges. If you are considering working with a for-profit debt management service in particular, ensure you check out their fees, policies and reputation.
Your other option for debt help is to seek the advice of a Licensed Trustee in Bankruptcy. Trustees are licensed by the Office of the Superintendent of Bankruptcy (part of Industry Canada). In order to get a Trustee license, that individual must have completed an extensive training program, written professional qualifying exams and have several years experience in helping Canadians with their debt problems.
If you choose to work with a Trustee, they will start by doing a complete review of your financial situation and discuss all of the debt relief options with you, include those that do not involve filing for bankruptcy. As licensed practitioners, only Trustees can file a Consumer Proposal or a bankruptcy.
If you are struggling with debt, it’s important to make an informed decision based on a clear understanding all the potential options and which one will work best for you. Please contact your nearest MNP office to speak with a Trustee and start taking control of your life.
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