Understanding the role of various stakeholders when you are in debt
Since becoming informed is the first step to returning to financial health, we have described below the role of each person or organization to which a person in debt can turn for help.
|What do they do? How can they help you?|
|Licensed Insolvency Trustee||Debt management advisor|
|Stop interest charges||YES||Partially|
|Interrupt a lawsuit instituted by creditors||YES||NO|
|Negotiate with creditors to reduce the amount of debts||YES||Partially|
|What are their advantages?|
|Licensed and certified by a professional body||YES||NO|
|Fees for individuals’ files managed by law||YES||NO|
|Administered and controlled by the government||YES||NO|
IF YOU HAVE SERIOUS FINANCIAL PROBLEMS, CONSULT A Licensed Insolvency Trustee!
The alternative market is currently unregulated, resulting in questionable practices and sometimes very high interest charges. Moreover, such credit is often added to existing repayments and does not include all the other debts, which multiplies payments or creditors. The Canadian government, however, is trying to rectify the situation so that every citizen has access to fair credit.
N.B.: The expression “first chance credit” mainly refers to people who have never borrowed, while “second chance credit” refers to people who have already gone bankrupt.