August 26th, 2013 by Questions
I am 45 000 in unsecured debt and i can’t pay my monthly interest. I was thinking about bankruptcy, but leaning toward credit counseling. What would you recommend I do?
Posted from: Ontario
One Response to “Credit counselling”
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August 26, 2013 at 11:18 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
You may be better off looking at a consumer proposal.
There are a number of reasons for this, but the biggest is that it will have the same impact on your credit as credit counseling will but will allow you to pay a smaller portion of your debt back (with no interest).
So overall, it is a good way to to avoid a bankruptcy, but at the same time still allows you to bring your debt down to a manageable level that is lower than tha tof credit counselling.
The other associated advantage is that in order to be able to administer a consumer proposal you must be licensed by the Federal Government. This is a significant advantage over credit counselling as the credit counselling industry is largely un-regulated and many organizations are quiet questionable in the things they do and say. So I would first recommend you contact a trustee (they are the only people licensed by the government to administer the consumer proposal process) as it might save you thousands of dollars.