Consumer Alert—Debt Help, Tips and Traps
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In the fall the Office of the Superintendent of Bankruptcy and the Canadian Association of Insolvency and Restructuring Professionals teamed up to issue a Consumer Alert to warn Canadian consumers about pitfalls in the debt advisory marketplace and protect indebted Canadians.
Follow the link below for the full Alert but first, some key points:
- "Beware of unregulated, unlicensed debt advisors that claim to be authorized to assist you with insolvency options. Some charge hundreds or even thousands of dollars for services they are not licensed to provide, or for unnecessary services offered before, during or after a consumer proposal or bankruptcy filing."
- "If it sounds too good to be true, it probably is. Watch out for high-pressure sales tactics or unrealistic promises to quickly solve your debt problems or to fix your credit score. Signs may include high fees, high interest rates, delayed payments and advisors encouraging you to make further advances on your credit card or take out a high-interest loan to pay their fees."
- “Those faced with desperate financial situations are susceptible to false promises of a quick solution to their debt problems. Anyone considering a consumer proposal or bankruptcy should meet with a Licensed Insolvency Trustee first. LITs are the only federally regulated professionals who can provide debt relief options such as bankruptcy and consumer proposals. LITs are bound by a Code of Ethics and required to explore all debt relief options to help debtors find the best solution for their needs.”
– Elisabeth Lang, Superintendent of Bankruptcy.
Did You Know?
Many people who file for bankruptcy get to stay in their home.
In Newfoundland and Labrador, you can keep your RRSPs – even if you file for bankruptcy.
Many people who file for bankruptcy are able to keep their vehicle.
Most bankruptcies are NOT published in the newspaper.
Student loans can be included in a bankruptcy if they are more than seven (7) years old.
A consumer proposal is an alternative to bankruptcy that can only be filed with a licensed trustee in bankruptcy.