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.