Personal Debt Solutions Canada - Credit Counselling

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Counselling in Insolvency Situations

The terms credit counselling is a generic term that can be used to mean many things across Canada depending on the context that it is used. In some instance, it is the process whereby a "credit counsellor" reviews your financial situation with you to help you develop a repayment plan. This individual can be working for a "for profit" or a "not-for profit" agency where they may get funding from your creditors, or require you to pay a fee, or take a percentage of the payments that you make to them that they ultimately agree to flow to your creditors. Unfortunately, the term "credit counselling" or "credit counselor" in Canada is unregulated and anyone can use this term to describe the services they are offering to debtors.

Trustee in Bankruptcy

When dealing with a Trustee in Bankruptcy in Canada, as a debtor you are ensured that the individual you are dealing with is licensed with the Federal Government of Canada and is held to a standard of care based on these federal licensing rules and regulations. Further, when dealing with any of our members at Personal Debt Solutions Canada, each Trustee is also a member of the Canadian Association of Insolvency and Restructuring Professionals, a professional body which sets out standards of practice for all of its member trustees. Trustees offer credit counselling as part of the service that they provide to debtors as outlined under the Bankruptcy and Insolvency Act of Canada.

Credit Counselling offered by Trustees means to:

"Assist and educate bankrupts and/or relatives of bankrupts, or consumer debtors who have filed a consumer proposal, on good financial management, including prudent use of consumer credit and budgeting principles; in developing successful strategies for achieving financial goals and overcoming financial setbacks; and at any time, where appropriate, making referrals to deal with non-budgetary causes of insolvency (e.g. gambling, addiction, marital and family problems etc.)"

First Stage Counselling Session

When a debtor either files a Consumer Proposal or files an assignment into bankruptcy, the trustee will offer two separate counselling sessions beyond the initial assessment where the debtor's personal situation is reviewed.

At the first counseling session, the trustee will review with the debtor

Second Counselling Session

The second counselling session, which is at least 30 days after the first counselling session, the trustee and the debtor will review issues discussed at the first counselling session and follow up on the issues addressed that were of particular concern in the areas of money management and budgeting skills.

Some of these issues may include;

Get started to day to rebuild your credit and take charge of your finances by contacting a trustee close to you.