Does the FIRM
That is hired to do the debt settlement charge a fee during the `initial phase`? And how is your credit affected during this phase? as well can the institutions still carnish your wages if the feel it necessary?
Posted from: Ontario
That is hired to do the debt settlement charge a fee during the `initial phase`? And how is your credit affected during this phase? as well can the institutions still carnish your wages if the feel it necessary?
Posted from: Ontario
Yes, the firm that is involved with your debt settlment will charge a fee and often a portion of this fee is paid in the initial phase. The difficutly in answering your quesiton is that there are a variety of ways for someone to settle a debt. It can be done through a credit counselling agency, there are some consultants that offere such a service and you can also do this by offering a formal consumer proposal through a licensed trustee.
Because there are so many types of debt settlments the answer to your questions can vary depending on which type you are looking at. However, as a general rule your credit is affected and you can expect that you will have an R7 that is listed for a 3 year period from the date the settlment is completed.
As for institutions ability to garnish wages, the only type of settlment where this is not a risk is with the consumer proposal.