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.