About lender
BDO Debt Solutions is a division within BDO, a Canadian financial advisory company. Founded in 1958, BDO has been helping Canadians lower their debt load for over 60 years. Now it has more than 100 offices nationwide.
The company has Licensed Insolvency Trustees (LITs) and debt relief counselors within its team. They offer solutions that include debt counseling, a consumer proposal, and bankruptcy.
Features
BDO Debt Solutions can help you with a variety of financial issues:
Credit card debt
Tax debt
Student loan debt
Payday loan debt
Mortgage debt
Car loan debt
Bank loans and lines of credit
BDO Licensed Insolvency Trustees and counselors work closely with their clients to find an optimal solution to a debt problem. The company’s services include debt counseling, filing a consumer proposal, and filing for bankruptcy. As stated on the website, bankruptcy is a last resort option, and BDO Debt Solutions will only recommend it after exploring all the other debt-relief options.
Other company’s services include an assessment on:
Budgeting and repayment options
Debt consolidation loans
Debt forgiveness programs
Why go for a BDO Licensed Insolvency Trustee instead of a non-profit credit counselor? Unlike non-profit credit counselors who can only develop a debt management plan for you, BDO LITs can assist with a consumer proposal or bankruptcy.
Pros and cons
If you are having trouble paying your debt, reaching out to BDO Debt Solutions can be a way out. Here are the pros of working with BDO Licensed Insolvency Trustees.
Pros
You get expert advice on all types of available debt solutions.
BDO Debt Solutions can help you with a variety of debt types.
Unlike non-profit credit counselors, BDO LITs can administer a consumer proposal or bankruptcy for you.
BDO Debt Solutions takes care of negotiations with your creditors to come up with an affordable arrangement for you.
Upon filing a consumer proposal or a bankruptcy, collection agencies will stop contacting you.
Filing a consumer proposal assumes that all legal action against you will cease.
You can get your first consultation with a BDO LIT free of charge.
BDO Debt solutions specialists regularly assess their experience and education by the government.
Still, there are certain cons to be aware of when working with BDO Debt Solutions.
Cons
Fees involved
A consumer proposal filed by a BDO LIT can temporarily lower your credit rating to R7 — the second-lowest rating agencies like TransUnion or Equifax use.
Personal bankruptcy will lower your credit rating to R9, which will stay on your file for up to 7 years.
In case of a consumer proposal or a bankruptcy, you will have to hand over your credit cards to BDO LIT, and you will not be able to apply for a new one until recovering your credit score.
When filing a consumer proposal, $250,000 is the maximum debt amount you can have.
When filing for bankruptcy, you can lose some of your assets as creditors can take them as a portion of the debt owed.
Filing for bankruptcy allows you to eliminate most of your unsecured debts — credit cards, lines of credit, bank loans, payday loans, and income tax debts.
As you can see, working with BDO Debt Solutions has definite advantages. They handle all negotiations with your creditors on your behalf, plus you get freedom from annoying calls from collection agencies. But, beware of the disadvantages such as credit score reductions and the risk of losing your assets when filing for personal bankruptcy.
Conditions
BDO Debt Solutions serves clients who are either Canadian residents or have a property in Canada. For those who have trouble getting out of debt, reaching out to BDO Debt Solution can be an effective way to get the desired debt relief. After diving deep into a client’s financial situation, the company will offer the optimal solution — either preparing a debt management plan, filing a consumer proposal, or filing personal bankruptcy.
The initial consultation with a BDO Debt Solutions professional is confidential and free. However, the larger your debt, the higher the fees.
