10 Mistakes Frequently Made When Choosing a Solution for Your Debt Problems

1. Seeking Help from an "Inappropriate" Credit Counsellor

Your financial well-being is too important to entrust to just anyone. Be careful who you choose to trust. We regularly hear of bad experiences with counsellors who are incompetent or downright dishonest. The Better Business Bureau recently issued a warning to consumers to beware of certain credit counsellors. While not all credit counsellors are dubious it is difficult to know who you can trust.

Counsellors cannot help you if a bankruptcy is your only option, and they cannot help you to compromise tax problems.

Only a Licensed Insolvency Trustee can offer you all of the options you have available. We can offer you an often better process called a Consumer Proposal which involves a payment based on what you can realistically afford, not based on what you owe.

Both John Beverley & Melody Desmarais are Licensed Insolvecy Trustees, licensed by the Federal Government, to assist you to determine your best course of action and to help you through the process you choose to follow.

2. Believing that a Proposal or Consolidation Plan is Better for your Credit Rating

There is no doubt that a Bankruptcy is the worst option for your credit rating.

That being said, the damage caused by other options is not far behind, and doing nothing will likely eventually lead to a severely damaged credit rating also.

Do not let a Credit Counsellor convince you that a consolidation plan will be good for your credit rating.

Let us explain to you how the credit rating process works.

Recovering from a bankruptcy is often achievable much quicker simply because the process is over much quicker than other options.

3. Choosing a Consolidation Plan that is Destined to Fail

Debt counsellors are unable to help you to reduce the amount you owe to your creditors.

A Proposal under the federal government’s legislation can dramatically reduce the total amount you pay to your creditors. A Proposal is tailored to the amount you can afford to pay, not to the amount of your debt.

Only a Licensed Insolvency Trustee can offer you such a Proposal.

4. Seeking the Help of an Inexperienced Trustee

Many Trustees work alone in small offices and have limited experience.

John S. Beverley & Associates has been helping people with financial difficulties for almost 30 years. Our staff have over 100 years of combined insolvency experience.

Let us use our experience to help you choose the best solution for your individual problems and to help ensure you receive the best possible advice.

5. Delaying the Decision to Talk to a Licensed Insolvency Trustee

Many people choose to wait too long before seeking the help of a licensed professional. In doing so they often suffer needlessly from asset seizures or wage garnishees which could have been avoided. We can help you to save your house, your vehicle and your wages but don’t wait until it is too late.

Call us today.

6. Entering into an Inappropriate Proposal

A Proposal to creditors is a very good option to resolve an overwhelming debt load but it is not the best option for everyone. A Proposal will be tailored to your specific income not the amount of your debts.

People frequently choose to file Proposals that are destined to fail, only to find themselves needing to file for bankruptcy later.

Let us help you to ensure that a Proposal would be your best option. For many people bankruptcy is a better option. We can explain why.

7. Liquidating Assets to Stay Afloat

Many people delay the decision to seek professional help too long. In doing so they frequently liquidate assets that they would have been able to retain.

The best example is collapsing RRSP’s to pay debts. Most people are unaware that RRSP’s can be retained.

Let us help you to determine an option that allows you to retain as much as possible of your valuable assets.

8. Trying to Keep Assets you Can't Afford

Many people who obtain advice from Counsellors or less experienced Trustees choose to retain assets which they can’t afford and which hampers their ability to truly recover financially. Sometimes these decisions can lead to ongoing problems or to the need for a subsequent bankruptcy.

Let us help you to determine whether it is in your best interest to retain a home or vehicle that may not realistically be affordable for you.

9. Using Credit to Pay Debts

Some credit decisions made in haste or under pressure will subsequently be found to have been bad decisions. Do not be pressured by creditors to give them assets as security, get a co-signer, or liquidate an asset to satisfy them, without the benefit of professional advice.

Some decisions can be more serious such as borrowing from one credit card to pay another, which is considered fraudulent.

Allow us to help you to avoid these unhelpful decisions. Call us today.

10. Failing to Claim your Exemptions

The government allows you to retain many important assets when you file for bankruptcy.

Let us help you to ensure that you are claiming all of the assets you would be allowed to retain.

Start your journey to financial freedom. Book your free, no obligation consultation today to connect with one of our experienced BC/Yukon Licensed Insolvency Trustees.