Licensed insolvency trustee Blair Mantin answers your questions about how to manage debts, including options such as Credit Counselling, Consumer Proposals and Bankruptcy in BC!
Q: What are some actions to avoid when trying to get out of debt?
A: Hiding from creditors: Ignoring creditors can lead them taking further steps to collect, including seizing wages and assets.
Paying off family debt first: Paying family debt in priority to other debts can be viewed as preferential treatment and can cause future problems.
Getting a co-signor: By co-signing, a person is agreeing to take on 100% of the debt if you can’t pay.
Cashing in RRSPs: RRSPs are federally protected assets. Don’t cash RRSPs to pay debt unless you fully understand the rules and the tax consequences.
Paying for debt advice: It should never cost money to discuss your options, so speak to a Licensed Insolvency Trustee first. We can often give you the information you need to move forward in a free consultation.