How to Find Reputable Agencies That Offer Credit Counseling in Oshawa

There are many companies offering credit counseling in Oshawa, but you have to know where to look to find those that are genuinely willing to help. The whole process can really be a very positive experience if you choose a reputable organization.

Reputable credit counseling agencies can help you get out of debt in several ways:

• Provide advice and guidance on money and debt management.
• Help you develop a budget.
• Negotiate a repayment plan with your creditors to reduce or eliminate interest charges and stop late and overlimit fees.
• Offer  free educational materials and/or courses on basic money management.

Trustworthy agencies share these common characteristics:

• They have counselors that are certified and trained in consumer credit, money and debt management, and budgeting.
• They send out free information about their organization and the services it provides without requiring you to provide any details about your situation.
• They always provide an initial counseling session which normally lasts an hour, with an offer of follow-up sessions.
• They will evaluate your entire financial situation thoroughly and help you develop a tailored plan that will solve your money problems.
• They have specific rules in place that are aimed at protecting consumers from potential stumbling blocks such as high up-front fees and late payments to your creditors.
• They are accredited by a National Association of their peers, like the Ontario Association of Credit Counselling Services (OACCS)

If a credit counseling agency doesn't have these trust factors, consider it a red flag and try to find another company to help you. Here are some tips to help you find the best agency that will work best for you.

Check out basic information

Look up better business bureau records or do a search in google for both for-profit and nonprofit agencies. In canada, there is a general rule that a company that provides a high standard of service should not have more than 1 or 2 complaints filed on their record with the Better Business Bureau (BBB) within a 3 year period. It is based on the simple logic that when the service provided is good, then the client won’t have any complaints at all.  Based on this standard of measure, check if a company has really good client reviews across several reputable websites.

Check out the fees

Reputable credit counseling agencies are bound by a strong code of ethics from charging high setup fees. They may ask for monthly administrative fees, but these are generally limited to $50. There is usually an initial DMP Enrollment fee of about $75 or less. If you cannot afford the fees, most agencies are willing to reduce or waive the fee.

Check if they provide in-person help

Nowadays, we see many companies providing counseling services through phone and internet communication. If you are someone that connects better with face-to-face interactions, then you should find an organization with a local office near you that offers in-person counseling. Ask friends and family whom you know have have used credit counseling services before to recommend any to you. Your financial institution and local consumer protection agency may also give you some good referrals.

If you’re struggling with a heavy debt load and can’t keep track of mounting bills, can’t stick to a budget, or can’t work out a repayment plan with your creditors, then you may need to contact an organization that offers credit counseling in Oshawa that will work with you to solve your financial problems. Be sure to do a thorough review of each company you plan to work with to ensure that you choose only the legitimate and reputable ones that won’t cause you to acquire any more debt.

Consumer Proposals in Toronto Can Help You Avoid Bankruptcy

Consumer proposals in Toronto can help you avoid bankruptcy and enable you to work out a formal agreement with your creditors to pay them a portion of what you owe them in full settlement of your debts. If your creditors accept your offer then your debts are significantly reduced to the amount you have agreed to pay them and your creditors are prevented from taking any legal action against you.

Consumer proposals are a much more favorable option compared to bankruptcy which lenders and financial institutions would often prefer a debtor to take. The arrangement benefits both parties. Creditors would rather you settle your debt by paying a reduced amount and get paid at least some of what they are owed, and you get to retain your assets and avoid drastically damaging your credit.

A consumer proposal is a legally binding process governed by the Bankruptcy and Insolvency Act. It is a formal agreement between yourself and your creditors that you will pay back a portion of the debt you owe at your own pace over a set period of time.

In recent years, consumer proposals have become a popular choice among highly-indebted Canadians. A big part of its popularity is the many advantages it offers, which can include:

• Eliminate unsecured debts for less than you owe
• Reduce your monthly payments;
• Keep your assets like your home or car
• Get immediate protection from your creditors
• Stop all legal action including collection calls and wage garnishments
• Avoid bankruptcy
• Allow you to start saving for your future

A consumer proposal is essentially a plan that can only be arranged and administered by a Licensed Insolvency Trustee (LIT). The LIT will develop an offer for your creditors to revise the terms of your debts, including negotiating a more affordable outstanding amount, payment schedule, and/or interest rate.

To put the plan in place, your trustee will first determine how much you can afford to pay back every month. He will take into consideration several factors, such as your living expenses and all your sources of income. Once he has determined the amount you can afford to repay, he will then set up how long your consumer proposal will last. He  can arrange the payment plan for three years or up to five years.

The plan is then proposed to your creditors. In order for the plan to take into effect your creditors will  have to accept the proposal. Creditors have 45 days to vote for or against your proposal. If majority of your creditors agree to your proposal (50%+1 based on the dollars you owe), then it is deemed to be accepted by all your creditors. If no one objects within 15 days following the acceptance, your proposal will be approved by the court. Once approval by the court is released, this starts the formal agreement and you and your creditors are bound by law to commit to the plan.

If majority of your creditors vote no against the proposal, it can be amended. Your trustee will call a meeting and you and your creditors can negotiate directly and come up with a fairer deal that both parties can accept.

For many people who don’t want to go bankrupt, consumer proposals in Toronto are a better debt solution. Speak to a Licensed Insolvency Trustee to make sure that it is an option that you can take to help eliminate your debt and gain control over your financial future.

Who Provides Bankruptcy Services in Brampton?

There is only one group of professional who can provide bankruptcy services in Brampton. They are called Licensed Insolvency Trustees (LIT). No one else can provide these services, not an accountant and not even a lawyer and, most certainly, you cannot file for bankruptcy or a consumer proposal on your own. Only a Licensed Insolvency Trustee is given the authority by the Canadian government to administer  personal and corporate bankruptcies as well as consumer proposals to creditors.

Many other companies offer credit consulting or debt consolidation services, however, only a Licensed Insolvency Trustee can provide all bankruptcy services, whether a bankruptcy or a consumer proposal, in accordance to the Bankruptcy and Insolvency Act. Bankruptcy laws in Canada are governed by the Office of the Superintendent of Bankruptcy (OSB) and LIT’s, who are licensed and regulated by the OSB have the legal obligation to follow the laws and ensure that your rights and your creditors’ rights are maintained throughout the process.

If you are burdened by money problems and need help in dealing with a very heavy debt load, trustees will work with you to help determine what is the best option for you. Because Licensed Insolvency Trustees act in accordance with the Bankruptcy and Insolvency Act while other debt consultants do not, they are  bound by a strict code of conduct to explain all of your debt relief options to you. This means that they will not only discuss bankruptcy but all of your other debt options so that you can make an informed decision.

Residents of Brampton, Ontario have many options to choose from when it comes to getting out of debt. This includes:

• Debt settlement
• Debt consolidation loans
• Credit counselling
• Consumer proposal
• Filing for bankruptcy

When you consult with a Licensed Insolvency Trustee, he will first examine your financial condition and then look at all options to see what would best fit your situation.

How do you know if you qualify for bankruptcy services?

The Licensed Insolvency Trustee will let you go through a solvency test to determine if you are insolvent. In order to be eligible for bankruptcy you need to meet all three of these requirements:

1. You owe your creditors more than $1,000. You simply add up all debt you owe and if it is greater than $1,000 then you meet the first requirement.
2. Your total debts exceed the sale value of your assets. If you sold the things you own would it generate enough money to pay off all your debts? If you don’t have a lot of assets then you basically do not own anything of value to sell and pay off your debts, and so you would easily meet this criteria. If you own a home with lots of equity or a car that’s all paid up, or a vacation property, or savings and even RRSP’s, then these assets will have to be appraised to determine their value and if the sale amount can cover your total debts.
3. You are unable to pay your debts when they are due. Can you meet all your monthly payments? Have you started making missed payments on some of your debts? Are you only able to make minimum payments on your debts and cannot afford to pay more?

When your Licensed Insolvency Trustee finally determines that you don’t have many assets or enough equity in your home, and that you are struggling to make monthly payments on your debts or pay your monthly bills on time, or your creditors have taken legal actions against you, like a wage garnishment or lien on your home, then he can conclude that bankruptcy might be the right solution. At this point, you can safely decide to avail of bankruptcy services in Brampton to help you and your family get a fresh start in the fastest and least expensive way.