Is it viable negotiating Consumer Proposal with none trustee?
March 20th, 2011 by Questions
Is it viable negotiating Consumer Proposal with none trustee?
Posted from: Ontario
One Response to “Is it viable negotiating Consumer Proposal with none trustee?”
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March 20, 2011 at 7:18 am, A licensed trustee said:
It can’t be done. Only a licenced trustee in bankurptcy may file a consumer proposal for you (you can’t use a lawyer or accountant, or a debt consultant). If you are negotiating with someone other than a trustee they are simply going through the motions to justify whatever fee they are charging you – the actual terms of your consumer proposal will be set with your trustee and then voted on by your creditors.
I know I am starting to sound like a broken record regarding “debt consultants”, but they have become quite a problem in the GTA. By our estimates, 1 in 4 people that file a consumer proposal or bankruptcy are paying a debt consultant some kind of fee simply to be referred to a trustee. They aren’t breaking any laws, but would you go and pay your hairdresser $500 to tell you that your car needs to go to a mechanic? Of course not. So why would you pay a fee to a “consultant” to refer you to a trustee? At the end of the day, it doesn’t change what the consumer proposal or bankruptcy will cost you, but if you are already in financial trouble there are probably better things you can do with your money…
Sorry about the rant – these guys really annoy me. Too many people that can’t afford to be fleeced are payng these companies a lot of money for very little value.