While we do not administer debt management plans we always consider them during every initial consultation when helping you decide which solution is best for you. If considering a debt management plan and seeking advice, ensure that you’re working with a licensed Trustee in Bankruptcy or reputable credit counsellor. Legitimate credit counsellors:
- Are certified by Industry Canada and/or the Ontario Association of Credit Counselling Services
- Never charge upfront fees
- Never charge referral fees
- Are nonprofit organizations who are often funded by the United Way
Rely on legal, regulated processes and not empty promises made by opportunistic individuals set to take advantage of people who need real and reliable help dealing with their financial situation. We recommend meeting with a Trustee in Bankruptcy, even if it’s not Welker and Company, to get the facts. You won’t be charged and you’ll undoubtedly make the most informed decision about the best solution for your financial situation.
We’ve compared a debt management plan to a consumer proposal to help you evaluate your options and understand the differences between the two solutions.
| Consumer Proposal | Debt Management Plan |
|---|
| Can only be filed by | Licensed Trustees in Bankruptcy | Accredited Credit Counselling Service |
| Stops creditor action | Yes | Only if creditors agree |
| Stops garnishments | Yes | Only if creditors agree |
| Eliminates tax debt | Yes | Only if creditors agree |
| Pay less than you owe | Yes, repay as little as 15% of your debt | No, all debts must be repaid in full |
| Impact on credit rating | R7 for 3 years after completion | R7 for 2 to 3 years after completion |
| Includes all creditors | Yes, if creditors possessing a majority of your debt agree | No, creditors who reject your plan can continue to pursue you |
Have a question? Our Trustees in Bankruptcy are standing by to review your situation, explain your options, and answer any questions that you may have. Reach us at (416) 246-7771 or fill out our contact form below and let us impress you with our prompt response.
