Debt Consulting Company Question received from Sarah T.

Question: I recently contacted a debt consulting company over the internet for help. I owed $22,000 in total, however, one of the debts for $6,000 was a “joint” debt with my spouse.

I asked if I filed a debt consolidation with them, how would they treat the “joint” debt.

I was told that the joint debt was considered two separate debts and it was considered that we each owed $6,000. Is this correct? They are asking for $2,000 upfront before they start representing me. Is this money well spent?

Answer : Thank you for contacting BNA Solutions. The problem with debt consultants is they are not regulated, there is no mandatory training through a Government body and there is little or no recourse when they give you wrong information.

What they told you is totally wrong. Just think about it logically, if you and I go in and borrow $6,000 and we jointly sign the loan application, we only got a total of $6,000. If one of us pays that $6,000, according to their information your spouse should pay them another $6,000? It just makes no sense at all. Do not use any debt consultant and only a Licensed Insolvency Trustee (LIT). To answer your question is it money well spent, the answer is clearly NO.

If you have someone in financial difficulty who has questions, please send your request to our blog page so all can see it. Alternatively, you could call us at  (403) 232-6220.

For more government information about Licensed Insolvency Trustees and the rules and regulations that govern them, please visit their website: http://www.ic.gc.ca/app/osb/tds/search.html?lang=eng

To learn more about how much less expensive a Consumer Proposal is versus a Debt Consolidation loan, sign up for our free Newsletter.