With everyone getting ready for Halloween, I’m sure there are a few Trustees in Bankruptcy considering dressing up like a “Debt Consultant” to give their colleagues a good scare! Trustees in Bankruptcy, like the ones that work at Hoyes Michalos and Associates and are licensed by the Federal Government, get pretty scared by all the debt “consultants” that are around these days. You’ve probably seen a lot of their ads – they’re everywhere! They make lots of promises about being able to reduce your debt by 70%. What their ads don’t tell you is that they’re likely going to charge you an up-front fee – maybe as much as $1,500 – and all they’re really going to do is refer you to a Trustee in Bankruptcy to file a consumer proposal. Of course, some people don’t ever hear from their “consultant” again after they fork over that fee.
The truth is that a “Debt Consultant” is not legally able to help you with your debt problems. Only a licensed Trustee in Bankruptcy is able to file a consumer proposal or personal bankruptcy for you.
When debt consultants are advertising that they can reduce your debts by up to 70%, they are referring to filing a consumer proposal. A consumer proposal allows you to make an offer to repay a portion of your debts, taking up to five years to make the payments. A consumer proposal is a contract that is filed with the Federal Government. It can stop wage garnishments and harassing collection agency phone calls, and also give you the satisfaction of knowing that you are paying back the portion of your debt that you are able to.
A consumer proposal is a great way for you to get a financial fresh start – but remember that only a Licensed Trustee in Bankruptcy can actually help you file one. Save your money and don’t pay any up-front fees for financial advice. You can come meet with us for free! If you’re interested in a free consultation to discuss your debt and the options that are available to you, including a consumer proposal, email us or call us at 310-PLAN today and we’ll get started on a plan that’s right for you.