Do You Need Pre-bankruptcy Credit Counseling Services in Alberta?

Posted by: Krista McDonald on 12/28/2011

Research on bankruptcy topics can be confusing for the Canadian debtor, as there are numerous resources that claim to provide reliable information to help the searcher mitigate his debt and the effects of a possible bankruptcy filing. The trouble may lie in identifying which sources actually supply qualified information, among other problems.  For example, there may be tons of resources for credit counseling on the Internet, but not many of them are geared towards pre-bankruptcy credit counseling services.

 

Many sites will provide you with information about credit counseling sessions being a requisite for bankruptcy filers in the midst of a bankruptcy filing, yet hardly any search will yield results about counseling prior to bankruptcy. Also, you may have found that search engine results for bankruptcy information tend to generate pages for both United States and Canada bankruptcy, which can lead to further confusion. Here are some tips to help you understand some of the basic differences between the two:

 

• Debtors considering a bankruptcy filing in the United States are required by law to attend pre-bankruptcy credit counseling services, but Canadian filers are not.

 

 

• Canada bankruptcy legislation states that a filer has to complete a couple of credit counseling sessions to the satisfaction of his or her trustee before the former can qualify for a bankruptcy discharge. This requirement is expected during ongoing bankruptcy proceedings, and not prior to them.

 

 

• There are documented cases in both the United States and Canada wherein pre-bankruptcy counseling has allowed prospective filers to steer clear of filing for bankruptcy.

 

Credit counseling services in these two countries may be able to help the future filer avoid bankruptcy, or at least manage its effects on his or her long-term financial stability, as it teaches the skills necessary to make productive decisions regarding one’s money, includes guidelines on how to spend less and make the most out of your credit. In addition, credit counselors also work with a debtor or prospective filer to identify the causes of money problems and establish a practical financial plan to resolve these issues. Keep in mind that there are some people who have thought about filing for bankruptcy as a means of debt relief, but have managed to avoid a bankruptcy declaration because their problems were mitigated or resolved early on by seeking credit counseling.

 

Canada bankruptcy trustee licensed to handle cases in your province may give you an initial consultation at no charge. This first session usually entails an examination of your financial situation so your trustee can determine the best debt management solutions that can work for you. Use these pre-bankruptcy credit counseling services to get you on the right track – talk to a licensed trustee and inquire about a free consultation today.