What Options for Debt Relief in Toronto will Work Best for Me?

There are a number of options for debt relief in Toronto that are available to those who have a large amount of debt and suddenly find themselves no longer able to pay it off. Each option will certainly affect your way of living in some way. You may have to give up certain things like cable TV and magazine subscriptions. Others will need to struggle and work on a second job to make payment deadlines. Therefore, choosing the right option is key in ensuring success in managing and eliminating your debt load.

So what kinds of debt relief are available to me?

Self-help methods for debt control

You can develop a plan to pay off your debts on your own by using financial tools like a budgeting worksheet and debt calculator to help you get a sense of how bad your financial situation really is. This will help you figure out how much your income is, what type of expenses you are paying and how much you can afford to pay off your debt and put toward savings. For those who are nearly insolvent, taking this step will help you work out a plan before seeking professional help.

Professional Help for Debt Relief

Credit Counselling

One way to manage and eliminate debt is to get help from a credit counselling agency. One of the best strategy that credit counselling uses to pay off your debt is through a debt management program (DMP). They will negotiate with  you and your creditors and agree on a certain amount that you will have to pay on a regular basis. Once you sign up for a debt management program, you will start making regular payments to the agency who will in turn use those payments to pay off your creditors according to the terms of the plan.

Debt Consolidation

Debt consolidation is the process of combining all of your debts and multiple bills into one single loan that results in having one debt balance, one interest rate and one lower regular payment. The overall effect is a lowered interest rate on your existing debt, saving you money in interest charges which you can put towards paying off the principal amount. It’s important to note, however, that your total debt amount is not reduced in this particular debt relief strategy.

Consumer Proposal

A consumer proposal is a legal agreement that is worked out by a Licensed Insolvency Trustee with all your creditors to negotiate a reduction of your total debts so you will just have to pay a portion of what you owe and your creditors agree to write-off any remaining outstanding unsecured debt. From the date you file a consumer proposal, you are provided immediate protection by the law and collection companies and creditors can no longer contact you, interest charges stop accumulating, and most wage garnishments cease instantly.

Bankruptcy

In some cases, filing for bankruptcy can be the most efficient solution to eliminate debts. It is the very last option to be considered after all other alternatives have been evaluated. Similar to a consumer proposal, a bankruptcy can only be administered by a Licensed Insolvency Trustee and you are provided the same legal protection on the very day you file. Contrary to what many people believe, you will not lose “everything” in a bankruptcy, and most, if not all, of your debts are completely wiped out.

While there may be several options for debt relief in Toronto to choose from, you’ll have to take into account the fact that your financial situation is different from other people and one option that may have worked for others may not necessarily work out for you. The best way to choose the right solution for your specific debt situation is to understand all the options you have out there not only in getting rid of your debt but also in helping you prevent debt problems from happening again.

How Credit Counselling in Brampton Solves Debt Problems

Credit counselling in Brampton, as well as in other areas in Canada, is an effective debt management program that has helped many debtors solve overwhelming debt problems. The objective of the program is to empower the debtor through education, budgeting and other tools to help him reduce and ultimately eliminate his debt.

Credit counselling is typically done by credit counseling agencies that have a team of qualified credit counsellors or debt counsellors who have obtained the necessary training and education to expertly find solutions for consumers in debt.  They can act in your behalf to negotiate with your creditors to stop the collection calls and put you on a path to a debt solution that you can afford so you can regain control over your financial life.

There are basically three steps in credit counselling.

In the first step, credit counsellors will evaluate your financial situation. They will obtain a list of all your assets and household income and compare this with a list of all your expenses and debts. In this way, they’ll help you get a clear picture of how your monthly living costs are exceeding your income, how much your total debt load is, and how your debts are increasing month by month due to surcharge fees and high interest rates.

After analyzing your debt and income levels, the second step is to recommend possible credit solutions and to help you determine the best option that is most affordable to you. The most popular solution is to consolidate debt through a Debt Management Program (DMP). In a DMP, you would authorize a qualified credit counsellor to negotiate with each of your creditors to lower your monthly amount due, to lower the interest rate of each loan, to waive late fees that are outstanding and then to consolidate all your debts into a single loan payment. The credit counsellor will be handling all the details for you, from negotiating to consolidating the debts as well as setting up a fund transfer method, placing your funds in an insured trust account, setting up timely payments to creditors and monitoring those payments. Your credit counsellor can also find another solution in cases where DMP is not an option. These option can include negotiating a debt relief from your creditors where a partial amount or the whole amount of your debt is forgiven or help you obtain a debt consolidation loan which will allow you to make just one payment for all your unsecured debts.

The third step in credit counseling services involves helping you acquire the financial knowledge and skills you need to live your new life free of bad debt. This will require you to attend one-on-one counselling sessions with your credit counselor and joining group courses and seminars that will teach you how to rebuild your credit history, how to manage a budget and stick to it, and how to use credit properly to improve your credit score.

Credit counselling services in Brampton can help any resident find the best strategy to pay off debt. But, not only that. The range of services are also designed to effectively help anyone get back on track and keep their life debt free once the program is completed.

What to Tell a Licensed Personal Bankruptcy Trustee in Toronto

bankruptcy trustee

Before you file for bankruptcy or a consumer proposal in Toronto, a licensed personal bankruptcy trustee will first need to make an assessment of your financial situation. This initial consultation is usually a free service and will help you decide whether filing for bankruptcy is right for you or another debt repayment option is the better course of action.

Two things are accomplished during this initial consultation:

1.         The Trustee will be able to look at your financial situation thoroughly, then inform you of all your options for paying off your debts and counsel you on the best steps to take to solve your debt problem.

2.         You have the opportunity to ask questions about all options that are available to you and to fully understand the consequences of each option before you make a decision about your financial future.

During the assessment meeting, you’ll need to divulge important details and release certain documents to help the Trustee understand your situation fully.

Some documents you’ll need to bring on the day of your meeting include the following:

-        A detailed list of all your debts, including statements, invoices, letters from creditors or other documents to validate the amount of each debt.

-        A detailed summary of all your assets, including your house or other properties, cars and any investments such as RRSPs and RESPs

-        Your latest pay stub to show your most recent income and deduction information

-        A detailed list of your monthly expenses

You’ll also need to disclose important details about your life that impact, or may potentially impact, your financial situation. Some of these details can be:

-        Marriage, separation or divorce. If you’re entering into a marriage with a boatload of bad debt, your Trustee can advise about how to keep both of your credit histories separate. A recent separation or divorce may make you liable for debts incurred during the marriage. If you disclose that a separation may happen in the future, your trustee can explain who is responsible for debts in a separation or divorce.

-        A medical condition. Your Trustee has to know if you have any medical condition that may put your ability to earn at risk, which in turn may affect your ability to make payments and fulfill the terms of the bankruptcy or other payment option you choose.

-        Employment changes. Whether you are starting a second job, or you just got a raise, or you lost your job, your Trustee has to know all your sources of income so he can recommend the best solution that is most affordable for you.

When you enter into a legal process, such as bankruptcy or a consumer proposal, it's extremely important that you disclose all important facts to your Trustee. Any undisclosed information could complicate or lengthen your bankruptcy.  At the very least your bankruptcy discharge may be delayed, or at worst you could be charged criminally if your omission is proven to be fraudulent.

Keep in mind that when you work with a licensed personal bankruptcy trustee in Toronto he is there to help you, counsel you and to uphold your rights. So, it’s not a good idea to keep anything from him. Work with your Trustee instead, and make sure that he has all the relevant information he needs to give you the best possible chance to start a new debt free life.

How to Become a Licensed Personal Bankruptcy Trustee in Scarborough

In Scarborough, a licensed personal bankruptcy trustee is a highly trained professional that administers bankruptcy proceedings and other credit and debt counselling settlements.  The Trustee profession is highly regulated by the Office of the Superintendent of Bankruptcy Canada (OSB). This government agency is directly responsible for governing and monitoring all aspects of insolvency in Canada, in accordance to the Bankruptcy and Insolvency Act (BIA),  which includes granting licenses to Trustees, supervising the administering of estates and overseeing the conduct of Trustees.

Before granting someone a license to become a Trustee, the OSB must make sure that the person meets certain requirements.

The first prerequisite is to obtain the necessary education which can be either a Canadian university degree or its equivalent, or at least have five (5) years of relevant work experience in the field of bankruptcy. An individual who belongs to a recognized Canadian professional association or relevant regulatory body may also qualify.

Another training requirement for Trustee licensure is completion of the Chartered Insolvency and Restructuring Professional Qualification Program, also known as the CIRP Qualification Program (CQP). This is a three-year course administered by the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), which is a professional organization representing bankruptcy trustees throughout Canada.

In addition to completing the CQP, candidates are also required to complete the Insolvency Counsellor's Qualification Course or the ICQC. This a four-module training program also administered by the CAIRP for developing the skills needed to become a qualified Insolvency Counsellor. The Bankruptcy and Insolvency Act (BIA) requires individuals who counsel debtors in trustee positions and who work in credit counselling services to become registered Insolvency Counsellors.

After completing training, candidates go through two testing requirements. They must first pass the National Insolvency Examination administered by the CAIRP in order to be certified as Chartered Insolvency and Restructuring Professionals or CIRP. Upon passing the national examination, you will receive an invitation from the Office of the Superintendent of Bankruptcy (OSB) to take an Oral Board of Examination which you must pass in order to obtain license as a Licensed Insolvency Trustee.

Another requirement to become a Trustee is to be evaluated by the OSB as being a person of good character and reputation. This means that the candidate does not have any criminal record or has not been convicted of any civil offense. These are critical considerations in order to protect the integrity of the bankruptcy and insolvency system and ensure the Canadian public, particularly users of insolvency services, that they are competently served by honest and competent professionals who are capable of resolving creditor/debtor disputes fairly and effectively.

The last requirement for getting a Trustee license is to pass evaluation by the OSB as being a person who is solvent and who has not resorted to bankruptcy in the last five (5) years. Obviously, this is a reasonable condition. Licensed Trustees will be helping Canadians with their debt problems and financial stress, so naturally their own life must reflect a certain financial stability in order to be regarded as credible.

Becoming a licensed personal bankruptcy trustee in Scarborough, or anywhere in Canada, will certainly not be quick and easy. If you are interested in pursuing this career path, you can look for more comprehensive information in the websites of the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) or the Office of the Superintendent of Bankruptcy (OSB).

Responsibilities of a Licensed Personal Bankruptcy Trustee in Oshawa

A licensed personal bankruptcy trustee in Oshawa, as well as in the whole of Canada, is a person who is regulated and licensed by the Office of the Superintendent of Bankruptcy (OSB) to provide insolvency services through the BIA. These services include bankruptcy, consumer proposals, debt counselling, consolidation loans, and negotiating settlement agreements with your creditors.

The trustee’s foremost role is to help you understand your options for paying off your debt. He will review your situation to advise you on whether or not you can avoid bankruptcy and if another option can be considered. Once you and your trustee agree that filing for bankruptcy is the best course of action for you to take, he will then proceed to prepare the necessary paperwork and complete the process from start to finish.

In Canada, personal bankruptcy and other bankruptcies are governed by the Bankruptcy and Insolvency Act (BIA).  Only a licensed trustee can handle the filing of bankruptcy from beginning to end.

These are the primary responsibilities that a licensed bankruptcy trustee completes for his clients:

•          The first responsibility is to meet with you. During this consultation two things will happen: the trustee will review your financial situation by examining all your debts and he will advise you on all your available alternatives and offer recommendations as to the best option for you to take.

•          Once you decide to file for bankruptcy, the next responsibility of your trustee is to prepare the official paperwork.  This documentation is electronically filed with the Office of the Superintendent of Bankruptcy (OSB) and will be used to inform your creditors that you have filed for bankruptcy.

•          Once he has filed the documents with the OSB, your trustee proceeds to notify your creditors by mailing to them a copy of the filed documentation. At this point, bankruptcy protection is in place and you will be safeguarded from your creditors.

•          His next responsibility is to review claims and ensure that what your creditors say you owe them is accurate.

•          He provides you with the required credit counselling sessions that will help you realize the causes of your bankruptcy and also impart some guidance to help you manage your financial affairs in the future.

•          In the event that there is a dispute concerning any remaining income that you are obliged to contribute as part of your bankruptcy, the trustee will provide mediation services to help with negotiations.

•          He is also responsible for selling your assets, except those excluded from seizure by provincial and federal laws, and distributing the profits from the sale to your creditors.

•          He is in charge of overseeing your bankruptcy estate file, in which he will sell all assets held to help contribute to your outstanding debt.

•          Your trustee will also be responsible for evaluating your behavior before and during the bankruptcy process.

•          His final responsibility will be to make the application for your discharge from bankruptcy, which will finally release you of all your debts and give you a fresh start in life.

It is best to keep in mind that although you will be able to choose the trustee you want to work with, your trustee does not actually work for you. A licensed personal bankruptcy trustee in Oshawa is an officer of the court, and as one he is bound by law not only to investigate your situation as the debtor and to ensure that your rights are not abused, but also to look after the rights of your creditors. In a nutshell, he makes certain that the bankruptcy process is carried out in a fair and impartial manner for both debtor and creditor.

The Problem with Debt Consultants and Their Advice

Debt Consultants

Debt Consultants in Toronto are plentiful and advertise themselves very well in various ways. Their ads can be seen and heard in radio broadcasts, newspaper publications and even online. They can be really persuasive and know what to say to convince you that they can greatly reduce your debt. They’ll even say that you don’t need to file for bankruptcy to get out of debt. While all of this is a wonderful and pleasing proposition, just how true are their claims regarding the matter? Is their truth in a debt expert’s statement when they say it is possible get out of debt without the need for bankruptcy?

The answer is yes. There are a few ways to get out of crippling debt. One of the ideal ways to do this is by filing a consumer proposal. This is where an administrator, licensed by the Canadian government, will work with the person with debt and their creditors to reach a settlement. If both parties agree, then the creditors will no longer chase after the debtor and the debt to be paid is reduced significantly. It’s important to remember that ordinary debt specialists are not authorized by the government to handle consumer proposals. Only a Trustee in Bankruptcy can offer legal consumer proposals as well as provide a comprehensive assessment of your debt problem, provide possible solutions and even explain all the consequences of each and every solution.

A consumer proposal is not exactly the best option for everyone with debt. It all depends upon each and every person’s debt situation and after an in-depth financial analysis of a bankruptcy trustee.

On the other hand, what commonly happens is that some debt experts will recommend filing a consumer proposal, charge you upfront for their consultation time, and then simply tell the debtor to approach a bankruptcy trustee as they are not authorized to file it for you. It’s also unlikely that they will let you know of each and every possible solution for your case. Some of these debt experts are also known for scamming some of their clients. From being deceptive about being a non-profit organization, to offering debt consolidation loans when it’s actually a debt settlement program, a person needs to be really careful and do some research before setting up an appointment.

That being said, not all debt consultants will steer you into a decision that will only benefit them. Many do give good and solid advice when it comes to help you manage and reduce your debt. However, many of them are just not in the right position to fully assist you from assessing your debt situation, choosing the right the solution and executing said solution. In most cases, a trustee in bankruptcy is the best person or organization to approach as they are overseen and recognized by the federal government and the courts, ensuring you only get the best advice and information.

No matter what path you take, whether it is with a debt consultant or a bankruptcy trustee, the important thing is that you are taking steps to end your debt problems once and for all.

Seeking Consumer Debt Help from a Bankruptcy Trustee

Bankruptcy Trustee

May individuals experiencing crippling financial loans or difficulties are often in search of consumer debt help. Today, many of those with debt are not equipped with the right information or lack the necessary guidance to help them get out of their financial predicament. However if you do a bit of research, there are many advisors and consultants available that have the expertise and knowledge that a person needs to attain debt relief.

In general, all of the different types of debt consultants will be able to look through your current financial situation and provide you with different solutions and recommendations that will make debt relief as easy and as quick as possible. A debt management program may be utilized if applicable. Many would even work on a budget plan with you so that you can prevent and minimize any possibility of future debt problems. While they do charge a small fee for their services, these professionals can certainly equip a person with debt with all the information they could need and at the same time, give them the confidence and peace of mind knowing there is a way out of their monetary problems.

However, if there is even a possibility that you could be facing or could be applying for bankruptcy, a Bankruptcy Trustee may be the right person to approach. In Canada, a Trustee in Bankruptcy is a person or professional who has been licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer bankruptcy proceedings. However, their responsibilities and services do not end there. There’s a variety of ways that a trustee in bankruptcy can be of major assistance to any person that’s overcome with financial obligations.

In many ways, they can also act in similar capacity to a debt consultant. They can look through your current financial standing, provide counseling for your financial situation, and present you with all the options available to be free of debt. What’s important is that they will not automatically suggest going for bankruptcy. There are numerous bankruptcy alternatives possible which include debt consolidation loans and consumer proposals to name a few. In addition only a trustee will be able to review each and every option with you so that you understand all the pros and cons you may be facing in the future.

Most of the time, trustees are often more affordable than other debt consultants or debt solutions providers due to the fact that they are regulated by the federal government. The trustee looks after the rights of both the creditors and debtors to ensure that an amicable settlement can be reached.

In the current economy, it’s not impossible to find yourself in a difficult position where you are no longer able to pay off your existing financial obligations. If ever your situation does come to that, it’s best to immediately seek out assistance from professionals. Whether you decide to work with a debt counseling agency or a trustee in bankruptcy, this is definitely the best step you can take to finding the best solution for your situation and get consumer debt help as soon as possible.