“We’ll reduce your debts by 70%, negotiate with your creditors, maintain your perfect credit score and give you the financial freedom you’re so desperate for without going bankrupt! Call us today and we’ll set you up with one of our debt consultants right away!”
Have you heard of these catchy slogans from individuals who will tell you anything you would like to hear?
Unfortunately, about 1 out of 4 individuals in the GTA fall prey to these scam artists that will demand $1, 500 upfront (I’ve seen as high as $5, 000) to gather some basic paperwork and then they’ll refer you to a Trustee in Bankruptcy to undergo a Consumer Proposal. A consumer proposal is the number 1 alternative to filing bankruptcy and can only be administered by a Trustee in Bankruptcy.
At Hoyes, Michalos & Associates Inc we don’t charge and upfront fees and we feel it’s highly unethical and immoral to work with debt consultants and take referrals from them as they charge people for a service that any ordinary citizen can do themselves. They are not credit counsellors, paralegals, lawyers or Trustee’s in Bankruptcy. They have no authority to actually negotiate with your creditors or offer any legal protection. A Consumer Proposal with a Trustee in Bankruptcy grants you the same exact legal protection as a bankruptcy would.
My often used analogy to describe a debt consultant service:
“Your leg is broken? Give me $1, 500 and I’ll help you fix it. Thanks for your money, here’s a map to the nearest hospital.”
Unfortunately in today’s market, it’s almost impossible for the average consumer to discern who they can trust. Debt consultants advertise very heavily and their websites seem incredibly genuine and authentic.
Just this morning I met with a very bright university student and her mother. They both work in the financial services industry and before seeing me they met with a debt consultant who said that they would be able to make all their debts go away (not without demanding $1, 500 right away). Naturally they were both quite hesitant and turned off from the aggressive tactics they were being pressured with.
As it turns out, most of her debts were student loans which cannot be wiped away in a bankruptcy or a consumer proposal unless the individual has been out of school for 7 years. They were very smart to seek out a second opinion and save themselves thousands of dollars.
At Hoyes Michalos & Associates Inc. we never charge any fees for consultations (some trustee firms do). If you feel you need some genuine financial help and are unsure where to turn, give us a call at (866) 747-0660 or e-mail us and we’ll be happy to arrange a free consultation which most people find very helpful.