Credit Counseling

counselingA credit counselling program is not the same as a consumer proposal.

In Ontario, credit counsellors and counselling companies are not regulated by the government.

A credit counselling program is an informal debt settlement agreement negotiated with each creditor individually.

Your creditors can opt-out of the program even after they have agreed and while you are making your payments.

You will be charged a fee by the credit counsellor or the counselling company. This fee is in addition to your program payments. The total payments you make may exceed the total debt.

Some creditors such as Canada Revenue Agency (CRA) do not accept credit counselling programs.

In Ontario, the consumer proposals are regulated by the Federal government. Only Federally licensed trustees can file a consumer proposal on your behalf.

A consumer proposal, once accepted by 50.1 percent of the creditors, is a legally binding agreement on all creditors, including CRA. They cannot opt-out of the proposal.

There are no extra fees. In most cases, the total payments you make are much less than the total debt.

All actions that were taken by the creditors, such as wage garnishments, are stopped. (link to above page)

At Manku & Associates Inc., we are licensed to file your consumer proposal.