If it sounds too good to be true, it probably is.
The Office of the Superintendent of Bankruptcy has issued a News Release/Consumer Alert alerting those Canadian Consumers who are in financial difficulty to be aware of unregulated, unlicensed debt advisors that claim to be authorized to assist you with insolvency options.
These firms sometimes charge hundreds or even thousands of dollars for services they are not licensed to provide, or for unnecessary services offered before, during or after a consumer proposal or bankruptcy filing.
The release states that Canadian Consumers meet with a Licensed Insolvency Trustee (LIT). LITs provide independent, unbiased advice about the options to deal with debt. LITs are required to assess your financial and personal situation, and to discuss all options available for solving financial difficulties, including insolvency and non-insolvency options.
Quotes from the news release:
Those faced with desperate financial situations are susceptible to false promises of a quick solution to their debt problems. Anyone considering a consumer proposal or bankruptcy should meet with a Licensed Insolvency Trustee first. LITs are the only federally regulated professionals who can provide debt relief options such as bankruptcy and consumer proposals. LITs are bound by a Code of Ethics and required to explore all debt relief options to help debtors find the best solution for their needs.
Elisabeth LangSuperintendent of Bankruptcy
Canadians can feel confident that when they seek advice from a Licensed Insolvency Trustee, they are dealing with someone who has demonstrated they have the knowledge, experience and skills to help them make informed choices to deal with their debt. They are the only debt-relief professionals in Canada legally required to offer a complete financial assessment, explain all the options for debt-relief and offer unbiased advice.