BDO is a financial advisory company that started out in Winnipeg in 1958. Since then, they have grown exceptionally with more than 100 branches across Canada and employ 3000 individuals. Their strong partnerships and accounting background have resulted in BDO being able to create debt-relief solutions that are strategic and client-focused. From credit counselling to personal bankruptcy, BDO’s Licensed Insolvency Trustees are there to advise and guide you through the process.
One of the best things about BDO Solutions is that they can set you up with a wide range of counselling services and debt management procedures that vary in terms of intensity. If you’re already dealing with creditors, collection agencies, bad credit, other issues debt-related problems, one of their counsellors can also connect you with a Licensed Insolvency Trustee so you can file a consumer proposal or declare personal bankruptcy. Luckily, almost anyone can benefit from credit counselling through BDO.
Remember, the BDO credit counselling agency was established to help you deal with your debt problems. Because of that, you’ll have to be prepared for their initial evaluation process, which could include an inspection of your:
Although you’re not obligated to pay for any of their services or give them any of your sensitive information, keep in mind that a BDO counsellor might not be able to pinpoint the exact solution you need unless you’re willing to meet them half-way. Don’t worry, because a good credit counsellor will never judge you or give your information to anyone other than other relevant financial experts.
As previously mentioned, BDO is a multi-purpose counselling agency that offers a wide selection of simple and more extensive financial solutions. Their services are available to individual consumers and businesses in almost every province and territory in Canada, including:
Whether you’re starting to experience debt problems or you’re just looking for a bit of advice, a BDO credit counsellor can provide you with the knowledge required to get the ball rolling. Through their courses, you can learn to:
When necessary, BDO can help you apply for a debt consolidation loan or enter a debt management plan. The overall goal of both options is to reduce numerous high-interest debts at once, thereby leaving you with one monthly payment to keep up with. If all goes well, you can satisfy your creditors and save a lot of interest overall.
Additionally, BDO may report your payment activity to Canada’s credit bureaus (Equifax and TransUnion). So, if you complete your debt consolidation as agreed, your complete payments should gradually improve your credit score.
Unfortunately, your debt problems might be so bad that taking legal action is the most effective solution. In that case, the first option that a BDO counsellor will offer you is a consumer proposal, which can only be administered by a Licensed Insolvency Trustee. You’ll then repay your creditors on a monthly basis over a maximum period of 5 years.
Positive features of a consumer proposal include, but aren’t limited to:
All this said you’ll only be eligible for a consumer proposal if you have $1,000-$250,000 of unsecured debt. That means no debts that have been secured by collateral can qualify (mortgages, vehicle loans, etc.). Additionally, the event will have a significant negative impact on your credit report for 3 years following your final payment.
If the counsellor determines that no other solutions will be effective, they may decide that bankruptcy is in your best interest. Similar to a consumer proposal, this final resort can only be implemented by an Insolvency Trustee and would also totally free you from your debts in exchange for a series of court-assigned payments.
Positive features of bankruptcy include, but aren’t limited to:
The most unfortunate part about bankruptcy is that it has the largest negative financial impact of all, especially if you’re subject to surplus income payments, which can last several months. On top of that, the court may decide to seize your assets (home, vehicle, RRSP, etc.) if you owe enough and there will be a black mark on your credit report for 7 years following your date of discharge.
Credit counselling, while helpful in many ways, may not actually be the right choice for you because of the possible fees involved, which will vary from client to client. For instance, a debt consolidation loan will be more expensive because of the amount of time and negotiation it would take, not to mention all the interest that’s charged.
Those kinds of costs will increase by a huge margin if you become involved with a consumer proposal or bankruptcy, both of which can lead to a number of court-related fees and payments. On the other hand, a simple budgeting and debt management course could be relatively affordable for the average consumer.
Frequently Asked Questions
What is a Licensed Insolvency Trustee?
As mentioned, a BDO counsellor can connect you with a Licensed Insolvency Trustee once they’ve determined that a consumer proposal or bankruptcy is in your future. LITs are officers of the supreme court who are regulated by the terms of Canada’s Bankruptcy and Insolvency Act. Their task is to oversee consumer proposals and bankruptcies, as well as negotiate with creditors on your behalf to settle your debts and put an end to any debt collection penalties. Is credit counselling guaranteed to help me?
Credit counselling can do wonders for your financial health and help you save a lot of money by eliminating your debts as quickly as possible. However, no credit counselling service is 100% guaranteed to fix your finances or credit report. Watch out, because any supposed credit counsellor who claims they will make your problems vanish in exchange for a fee is likely to scam you.What are the pros and cons of BDO credit counselling?
Pro
Cons
Product Details | |
|---|---|
Bankruptcy | Filing for bankruptcy is a very stressful and hard decision to make. With BDO’s LIT, you can breathe a little easier knowing you can rely on someone who will help you through this financial crisis. If you’re struggling with debt, talk to BDO’s LIT to see if bankruptcy is right for you. |
Consumer Proposal | A consumer proposal will help you get rid of your unsecured debt without having to file for bankruptcy. Your LIT will negotiate the terms with your creditor so you may pay off only a portion of your debt. |
Credit Counselling | BDO counsellors offer financial advice and debt-relief solutions that suit each individual’s unique circumstances. Whether you need budgeting advice or more serious help, BDO’s counsellors will create a plan according to your financial situation and guide you through it. |
Cookie cutter solutions. Would not recommend.
I liked working with these guys, they had a solution that was the right fit for me, thanks!
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