GTA Credit Solutions Services Ltd. Files For Bankruptcy Protection

GTA Credit Solutions Services (GTA Credit), a Toronto based credit counselling and credit advisor company, filed a Notice of Intention to File a Proposal on September 6, 2012. This is a form of protection pursuant to the Bankruptcy and Insolvency Act of Canada. On September 20, 2012 GTA Credit filed their Proposal to Creditors. The Better Business Bureau has also issued an alert about this company although the GTA Credit website, as of today, makes no mention of their filing.

In the last few years, an increasing number of credit counselling firms have opened, and heavily advertised, in Ontario. These credit counselling agencies often offer what can appear to be ‘too good to be true’ debt solution options for a debtor who is burdened with too much debt but is hoping to avoid going bankrupt. Some are for profit credit counselors, like GTA Credit, while others are ‘not-for-profit’ credit counselling agencies that have opened offices in Ontario and across Canada in recent years.

GTA Credit describe themselves as an independent credit counselor agency that charges a fee from individuals to provide credit and debt relief advice. In many cases, the solution GTA Credit has recommended was for the person to file a consumer proposal. Unfortunately, GTA Credit is not a licenced trustee in bankruptcy and therefore they cannot provide this service. Instead, once their fee has been paid, they may refer the person to a trustee. Of course, if the person had contacted the trustee directly then they would not have had to pay GTA Credit’s fee.

Choosing a debt advisor is critical first step in dealing with your debt problems. You want to choose an agency that is reputable, will present all of your debt solution options, and is clear about how they will be paid and what services they will be providing. Read our article on how to choose a debt advisor or credit counsellor for more information if you are in need of debt help.

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