To begin, there is no such thing as a “debt arbitrator”, at least as far as a professional designation in Canada goes. Anyone prporting to be a debt arbitrator is likely no more than a consultant who hopefully has some experience in these matters.

Second, the majority of the debt consulting firms you see advertising in the papers and on the radio will charge you a fee, meet with you a couple of times and then refer you to a trustee to do a consumer proposal.

There are some bona fide credit counselling agencies out there – they are not for profit agency specifically set up to provide people that can afford to repay their debts in full with relief from interest charges and collectors.

Before you sign any agreement with a debt arbitrator or debt consultant ask them specifically if their company will be handling the entire matter, or if they are going to refer you to a trustee to file a consumer proposal. If they are going to refer you to a trustee then don’t sign – simply call a trustee yourself and save the fee the debt arbitrator was going to charge…