There are a lot of online calculators that will calculate whether you qualify for a consolidation loan, what your credit card payment will be and whether you qualify for a consumer proposal to name a few.
This article focuses on the consumer proposal calculator. These calculators are generally run by unlicensed professionals who actually cannot help you file a consumer proposal. They claim to offer debt relief but what the reality is, they simply charge a fee (which most people who need debt relief cannot afford) and then refer the file to a Licensed Insolvency Trustee (“LIT”) whom the consumer has to pay again.
These calculators are misleading and make claims about how much debt can be reduced and what the monthly payment would be. They are designed to fool you into thinking you qualify to file a consumer proposal.
These calculations are generally just wrong and do not reflect the many different factors that are needed to determine whether a consumer proposal is viable and capable of being accepted by your creditors. No two situations are alike.
To be frank, I have never seen a consumer proposal calculator state that you weren’t qualified.
A consumer who wishes to file a consumer proposal or a bankruptcy, must use the services of a Licensed Insolvency Trustee. There are no other debt professionals who can assist them. So the people who advertise these calculators have no ability to do anything.
Secondly, they must undergo a full financial assessment by the LIT and disclose their assets, liabilities, and their income. This includes understanding the composition of the debt, whether the debt is secured or unsecured and what types of debt are owed (credit card debt, student loan debt, business debt, taxes, etc).
The takeaway here is that if you are in debt you need to talk to a Licensed Insolvency Trustee. Don’t rely on some mathematical gimmick that’s run by unlicensed professionals who will take your money but cannot help you. The general information provided by these websites that make outlandish claims about debt reduction and monthly payments are simply delaying the process of you knowing what the true options are. By calling a LIT directly, you will save time and money and have the correct information available to make an informed decision.
Boale, Wood & Company Ltd. – Licensed Insolvency Trustee
Boale, Wood & Company Ltd. is a Licensed Insolvency Trustee that has been around since 2004. We are local experienced insolvency practitioners who have a hands-on approach to your situation. We understand the personal impacts of major financial stress. We offer free consultations to review your financial situation and practical debt resolution options.
Contact us to discuss your situation over the phone, a video chat, or in-person. You will talk directly to a Licensed Insolvency Trustee.