If you’re thinking of filing bankruptcy, then you’re not alone. Over 125,800 people filed for bankruptcy in Canada in 2016 alone. Plus, the current financial crisis due to the pandemic has proved to be a massive setback for many people all around the world. With the growing insolvency, a new trend has emerged: bankruptcy consulting services.
More and more people are seeking legal and financial help during this time of calamity. There are multiple benefits of seeking bankruptcy consulting services in Canada when thinking of filing bankruptcy filing, but you also need to be very careful because people get scammed as well. Read on to know the benefits of getting a consultation and how to stay away from bad advisors.
So Should You Get Bankruptcy Consulting Services in Canada?
YES, you absolutely should, and that’s because a professional with knowledge in bankruptcy can present you with a number of solutions that may even be better than a bankruptcy filing.
Plus, even there’s no other way. Getting bankruptcy consulting services in Canada can save you from a lot of pain that comes with paperwork. They can also guide you about the right steps to take for a bankruptcy filing.
4 Red Flags to Look For When Getting Bankruptcy Consulting Services in Canada:
- Huge Upfront Fees: This one is the most obvious scam where debt consultants will charge you over $1,500 before they even do anything. Sure, a small consultancy fee is fair because they’re investing their time in understanding your situation, but you do not have to pay them thousands of dollars in upfront fees before the creditors are notified of your bankruptcy filing.
- No Contact With Creditors: Yes, this is also one of the scams that some shady debt consultants do. They will take money from you and just sit back doing nothing. If you file the bankruptcy, your trustee needs to notify all creditors within five days from filing. They usually wait for years until you’ve saved money for the debt settlement amount, which means you may be getting sued left, right, and center from creditors.
- No Real People: Yes, this is another way that people around the world get scammed. These so-called debtors just list their numbers in online directories or make social media pages and wait for people to fall into their traps. They’ll charge you the money and disappear. You should always work with someone having a credible background when getting bankruptcy consulting services in Canada. This means checking out their website and ensuring they have a team of real people listed there. Try to find their office address and meet them in person if possible.
- No Option Explanation: Someone trying to scam you will not tell you all of your options. They’ll just try to sell their bankruptcy filing service even when you could’ve gone for a different option.
Always hire credible bankruptcy consulting services in Canada by looking at the background of the agency having a face-to-face consultation with them.
Try to observe how well they’re handling your case; they should not try to sell you their services but rather work with you and explore your options.