A few days ago I met with Sally (not her real name). On the advice of a friend, she went to see a trustee and told me she didn’t like how she was treated and felt pressured. She decided to get a second opinion and came to see me. She and I talked about the appointment she had and she told me she paid $350 for the first meeting (which raised an alarm for me right away), the person wanted her to sign paperwork on the spot, she told him she didn’t want to and left.
She told me she called him a few times in the next month with questions and her phone calls were not returned. She was told she would have to pay the balance of his consultation fee of $1500 before he would meet with her. Unfortunately Sally did not go to see a Trustee, but went to see a debt consultant. The first warning sign should have been the fee required for a meeting. If someone is going to charge you a fee just to meet with you, call someone else.
I also met with Richard. He came to see me because he really would like to file a consumer proposal. He went to see another trustee and all they talked about was bankruptcy. I reviewed all of Richard’s options with him and a consumer proposal made much more sense. We calculated a bankruptcy would cost him $12,000 because of his income, so instead he is going to file a $12,000 consumer proposal. If the Trustee won’t review all of your options so you can understand the costs associated with both a consumer proposal and bankruptcy, go see someone else.
It’s important to know that you can choose who you meet with, and it’s your decision on what to do. Don’t let anyone try to talk you into one option over another.
There are several signs to look out for when you call to book an appointment or go to see a trustee
1 – When you called during normal hours, was someone available to help you on the phone, or did it take hours or days to get a return phone call. If you can’t speak to anyone on the phone, how likely will they be to help you when you have questions? Be wary of someone who offers service 24 hours a day. Is a trustee really going to meet with you at 3 am – of course not. You are only going to be able to leave a message with an answering service who can`t answer any of your questions. If you call Hoyes, Michalos and Associates and a trustee or client service specialist is not available to speak with you when you call, we do our best to call you back within the hour.
2 – As I mentioned before, do not meet with anyone who is going to charge you a fee just to talk to you. We do not charge a fee to meet.
3 – Did the Trustee take the time to review your entire situation and explain all of your options? You may have an idea of what you want to do, but the Trustee is still required to review all of your options. If you feel pressured to do something you don`t want to do or to make a decision right away, talk to someone else.
4 – How did you feel when you left the meeting? Did you feel a sense of relief or did you feel rushed and annoyed when you left. No one is happy to come and see a Trustee, but you should feel a sense of relief when you leave, now that you know what your options are and that someone is here to help you.
5 – Make sure you are dealing with a Trustee. All trustee’s are licenced by the Office of the Superintendent of Bankruptcy. You can check their website to see if the person or company you spoke with is listed. If you are not sure you are meeting with a trustee, just ask them.
6 – What kind of firm are you dealing with? Do you really want to be dealing with a trustee that advertises all of the corporate work they do or do you want to deal with someone who only deals with individuals just like you? We only deal with individuals.
Dealing with debt problems is stressful. Remember that you are in control over what you do and who you meet with. If it doesn’t feel right, then walk away.
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