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What you don't know can hurt you. You've done the best you could, cutting corners to make
the monthly paycheck stretch a little further but it's not enough. You feel you may be in
over your head and need help. Those ads you hear from debt settlement companies promising
to cut your debt in half sound very attractive but what you don't know about the promise
could hurt you. When you sign up you stop paying your creditors and instead make a lower
single monthly payment to the debt settlement company. They let your creditors know you've
signed on and to expect a settlement offer. Sounds good so far, but here is what you don't
know. You think the monthly payment is going to your creditors, it's not. It's going into
an escrow account. Your creditors are left waiting until the balance is large enough
to offer a settlement. None of your creditors are obliged to go along with the plan and
there's nothing to stop them from initiating collection activity against you if they don't
want to wait. A debt settlement plan is not your only option. Canadian law has a solution
called a Consumer Proposal. It's pretty much identical to a debt settlement plan. The difference
is legal protection from your creditors. If this sounds better to you, take the time to
make a call to a licensed Halifax bankruptcy trustee. They can tell if you qualify for
a consumer proposal. Brought to you by the Halifax trustees at Personal Bankruptcy Canada.
Helping good people with bad debt.