Where can I get free bankruptcy advice in Canada?

How to Get a Free Bankruptcy Consultation

In general, you have two options for receiving free bankruptcy advice to help you decide if this is the right path for you. They are:

Talk to a credit counselor for help with debt.

Before moving forward with bankruptcy, you should speak to a licensed, experienced credit counselor at a non-profit agency to get debt assistance and take an objective look at your overall circumstances. We are licensed professionals who can provide you with guidance on your financial situation – initial consultations are free, confidential and without any strings attached.

To get an overview of your financial situation, your credit counselor will ask you about your income, assets, expenses, bills, and debts, as well as your financial goals. He or she will then advise you on debt relief options, from debt repayment plans to debt consolidation, and of course, bankruptcy or a consumer proposal.

Meeting with a Licensed Insolvency Trustee (LIT)

If you are still considering filing for bankruptcy, you need to appoint a Licensed Bankruptcy Trustee, or LIT, in the province you live in. They are the only people licensed by the Office of the Superintendent of Bankruptcy of Canada (OSB) to execute proposals and bankruptcies.

The trustee will be your advisor throughout the process, from filling out and submitting the paperwork to representing you in court to get your discharge. The process takes 9 to 21 months, but if this is your second time filing for bankruptcy, it could take up to 36 months.

When you meet with a CCS credit counselor, we can refer you to reputable debt settlement offices in your area, so you don’t end up with a fast-track debt settlement company that could leave you with huge bills and fine print. Choosing the right trustee is crucial because they will ensure your rights are respected while acting as court administrators and recovering as much money as possible for your creditors.

Your bankruptcy counselor will meet with you for a free initial consultation, where they will review your financial situation, taking into account your income, assets and debts. The trustee will tell you what fees are required to file for bankruptcy and whether any of your assets will need to be liquidated as part of the process.

What are my alternatives to bankruptcy?

While bankruptcy may immediately come to mind when you’re faced with a financial problem, there are alternatives to bankruptcy that many people don’t know about. Options include debt management programs, traditional debt consolidation, debt settlement, or consumer proposals. These alternatives to bankruptcy won’t hurt your credit score and future prospects for getting a loan as much as bankruptcy would.

Your credit counselor can guide you through the options to help you determine the best course of action:

• Debt Management Programs These programs are a voluntary arrangement between you, your creditors, and a credit counseling association that helps you get out of debt. Your credit counselor acts as an intermediary between you and your lenders, helping you come up with a single, manageable payment for your unsecured debts, such as credit cards, payday loans, overdrafts, and personal loans. Your creditors support the program by waiving or reducing ongoing interest charges so you can reach your goal of getting out of debt sooner.
• Debt settlement When you offer your creditors a lump sum of cash to settle your debts. Once your creditors accept the settlement agreement and cash, the debts are considered “fully settled” and you no longer owe any remaining money. You can mediate this settlement yourself by contacting your creditors, but it can be a time-consuming process. A credit counseling association can work on your behalf to settle your debts. If your creditors agree to the settlement, the credit counseling association will transfer the money and help you rebuild your credit rating faster than if you settled the debts yourself.
• Monotheism The process of consolidating all of your loans into one new account is usually done through your financial institution. If you qualify, the financial institution will approve your loan, pay off your unsecured debt, and then move forward with making a single payment. The problem is that you have to qualify for a reasonable interest rate and live on a budget until the new loan is paid off. If you don’t, you could inadvertently double your debt.
• Consumer Suggestions Combining elements of a debt management program with bankruptcy proceedings. Just like filing for bankruptcy, you’ll need a licensed bankruptcy trustee to proceed with this option. It’s a legally binding agreement between you and your creditors where you commit to paying a reduced amount of your debt over a set period of time, such as five years.

Still looking for a free bankruptcy consultation? Start here.

When you’re in financial trouble and don’t know what to do next, contact a credit counselor for guidance on where to get free bankruptcy counseling. With all the options available to you, help determining where to start is invaluable. A credit counselor will look at your financial situation and provide a personalized plan based on your circumstances and goals. They can help you create a budget, manage your debt, and develop a repayment plan. There are no hidden fees, fine print, or strings attached—just practical solutions to your debt.