Bankruptcy - Personal Services

Credit Counselling

If you find yourself experiencing financial difficulties in these challenging economic times, rest assured that you are not alone. And, there is help. Professional, federally licensed insolvency trustees can evaluate your current situation and provide you with many options for dealing with debt. One such option is credit counselling.

What is credit counselling?

Credit counselling solves debt problems without bankruptcy and provides you with the skills to live debt free. Credit counselling services include budgeting, how to use credit wisely, rebuilding credit and debt management programs.

What are debt management programs?

Debt management programs are designed to help you pay off debt. You enrol voluntarily in a debt management program; it is not court mandated. Once you enrol a credit counsellor will contact your creditors and ask for their cooperation in reducing your debt. Your creditors may agree to make concessions like reducing the amount of debt owing or reducing or eliminating the interest owing. Not all debts are covered under a debt management program. Secured debts like a mortgage or car loan are not covered because the creditor can repossess the house or car if you don't make your payments.

One word of caution: we have had cases where certain debt management companies failed to provide any meaningful service for the individuals, other than charging fees and not achieving any results. We recommend that whether you contact a non-licensed provider of debt management programs, or a licensed trustee in bankruptcy, you do so after obtaining a referral from someone who has some experience with that provider or considering the costs and benefits very carefully.

How will my credit be affected?

When you enrol in a debt management program it will appear on your credit report and as a result it is unlikely that you will have access to more credit until you have completed the program. The fact that you were enrolled in a debt management program will most likely remain on your credit report for two to three years.

The sooner you get yourself out of debt the happier you'll be. Ira Smith Trustee & Receiver Inc. is here to help. Contact us today and take the first step towards living a debt free life andStarting Over, Starting now.