What are Licensed Insolvency Trustees, credit counsellors, and debt settlement businesses?
Licensed Insolvency Trustees, counsellors, and debt settlement businesses, all offer financial advice. But they are very different.
A is the only person who can file a or for you. A trustee can also give you financial advice and help you understand how to repay your debt.
Credit counsellors and debt settlement businesses can give you financial advice and information. They can help you make a and make plans to repay your debt. But they can't file a bankruptcy or consumer proposal for you.
There are two different kinds of credit counsellors:
- Non-profit credit counsellors
- For-profit credit counsellors
Non-profit credit counsellors work with you at a low-cost or sometimes for free. But for-profit credit counsellors and debt settlement businesses charge you for their services.
The government of Ontario sets rules that all counsellors and debt settlement businesses must follow. Licensed Insolvency Trustees follow a different set of rules.