Avoid Unnecessary Fees
There are a number of for-profit companies that advertise insolvency – especially consumer proposals – as a quick and easy way to get rid of your debt. However, by law, only a Licensed Insolvency Trustee (LIT) can fill out and file paperwork for insolvency. Trustees are specifically licensed by the Canadian government to administer these debt relief options, and the best way to find a reputable one near you is to contact a non-profit credit counselling organization like us.
Non-profits know who the good bankruptcy trustees are. Because credit counsellors at non-profits are not paid commission, they can objectively guide you towards the best solution for your financial challenges – and it won’t cost a cent.
If either a consumer proposal or bankruptcy appears to be your best option, they will refer you to a reputable, licensed trustee, who will then help you legally file for insolvency. You can also check if a trustee is licensed by referencing the Government of Canada’s Licensed Insolvency Trustee directory.
Unfortunately, some debt relief companies charge people thousands in fees only to then refer them to a trustee. The trustee then charges thousands more in legitimate consumer proposal or bankruptcy fees that are set by the government. Don’t pay more than you have to. When in doubt, ask for advice from a non-profit credit counselling organization. They are there to help guide you through these challenges – not make money off your difficulties.