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I mentioned a little about Consumer Proposals in a previous article and I have had a lot of calls requesting more information about them.

We have been recommending this type of solution to some debtors (depending on their circumstances of course), for some 10 years now, and yet it's only recently that we see Bankruptcy Trustees plaster major ad's on buses, in Yellow Pages, On TV, on anything and everything that's in your face, all advocating this …alternative to bankruptcy….

This is Not a New Law

Why now? I ask. Why did it take them so long? This is not a new law, so where were all these trustees over the past decade when you needed them? Why have literally hundreds of thousands of people been forced into bankruptcy when there was an alternative available all along? Some of these ads make me sick.

Ooops ….Did I say some?

Why Did Trustees Take So Long to Promote Consumer Proposals?

Well, anyhow, I'll tell you why they are all lining up to tell you about this very old solution to your very new financial difficulty…it's because they (your friendly and benevolent trustee) got a raise.

That's right, they got a legislated raise in 1998 therefore the more you pay the more they earn. A $10,000.00 proposal used to earn a trustee or administrator $1,500.00 but now that same proposal earns the trustee $3,200.00. That should cover the cost of a few ads here and there.

What do you think?

So, what is the next question? I suppose the next question is "Is this… alternative to bankruptcy… in your best interest each and every time?

Get Your Answers From Someone Who Represents YOU.

To know the true answer to that question you had best speak to someone who is prepared to represent your interest only and not the shared interest of you and your creditors, with the creditors and the self-interest of the trustee placing you on second fiddle.

Choosing the correct specialist to assess your financial problem may soon be as difficult as choosing the right lawyer. Colleges and Paralegal Associations are turning out persons with a certificate that entitles them to hang up a shingle and profess to be a credit/debt manager or other title of their choosing. The certificate would appear to have little if any other value.

The problem is that these same credit/debt managers are charging the unsuspecting public for nothing more than a referral to a trustee's office.

So BEWARE!!!

Illegal for Trustee to Give You, the Debtor, Advice

Consider this also; it is against the law for your trustee to give you any advice with respect to the protection of your assets.

That's right.

The law clearly sets out that the trustee's obligations are to represent your creditor's interests only. Fair minded trustees struggle with this issue trying to set a fair and equitable payment that the debtor can afford while still trying to recover the most money for the benefit of the creditors.

Engage An Agent to Represent You, the Debtor

Having an agent who specializes in these matters represent you exclusively can be a major benefit for you.

Think Thrifty!!!