Credit Counselling During Insolvency 

Credit Counselling During Insolvency 

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By Bromwich+Smith Staff | 841 words | Reading Time: 4 minutes | Date: 2024/02/09

Insolvency is a reality for many Canadians. As the cost of living has increased faster than our paycheques, Consumer Proposal and Bankruptcy have become more common. Canadians are seeking a way to deal with their overwhelming debt, and filing for insolvency is a strong option for many. One valuable resource included in both Bankruptcy and Consumer Proposal is credit counselling.  

What is credit counselling? 

Two sessions of credit counselling are included as part of the insolvency process. These sessions help clients regain their financial independence through tools and education.  

  1. Budgeting. The primary focus of the first credit counselling session is a review of the client’s current budget. The counsellor will make realistic and proven suggestions to ensure the budget is sustainable and will work for our client. Together, the counsellor and client will create an updated budget that allows for debt repayment and the cost of living.  

  1. Financial Education. Insolvency is often the result of several financial disruptions, many of which are unforeseen. Credit Counsellors will help our client understand the combination of circumstances that affected them, and equip them with the tools and education needed to avoid the same situation in the future. Having a strong foundation will prevent future financial disturbances from becoming unmanageable.  

  1. Planning for the future. The primary focus of the second session is planning. We all have goals and dreams, and this is where we’ll build plans to achieve them. This includes healthy shopping habits, the importance of savings, and setting financial goals.  

What should I expect during credit counselling? 

During a debt relief program, our client will have 2 sessions with a Credit Counsellor. This time together helps ensure they have the support and tools needed to make strong financial decisions. As mentioned earlier, the first session will focus on reviewing the current financial situation and budget. This allows time to look into the issues that led to insolvency and find supports to ensure it does not happen again. This time together really sets the foundation needed to allow our client the information going forward to make informed decisions.  

The second session will focus on financial management. Building on the first session, together the Counsellor and client will talk about financial disruptions that could take place, and work through the scenarios. Having already thought about such situations sets up our client for success going forward, armed with knowledge they need to avoid common issues such as overspending, under budgeting, building emergency savings, and more.  

These sessions are very easy to complete. With Bromwich+Smith, both sessions take place over video conferencing, which means you can book a time and place that works for you. The idea of counselling can be intimidating, so our Counsellors work hard to ensure you are as comfortable as possible. Our team is here for you to openly discuss your financial challenges, free of judgment and shame, so that we can support you on your journey. Our Counsellors have years of experience and will provide you with a variety of tools and resources.  

The time you spend with your Credit Counsellor is precious. We all have a deep-rooted money story that affects how we handle it, and this time will help to adjust that. We want to share our knowledge with you so you can thrive like so many we have helped before. Come with an open mind and we will bring all our knowledge and tools, and together we’ll help you rebuild your worth.  

Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at  1.855.884.9243, Live Chat  or you can request a call back at contact us page. We want to see you flourish!      

FAQs:

1: What is credit counselling in the context of insolvency?

Credit counselling during insolvency involves two sessions aimed at helping clients regain financial independence through budgeting and financial education. The first session focuses on reviewing and adjusting the client's budget, while the second session involves planning for the future.

2: What does the first credit counselling session primarily address?

The first session concentrates on reviewing the client's current budget. The Credit Counsellor makes realistic suggestions to ensure sustainability, creating an updated budget that allows for debt repayment and the cost of living.

3: What is the main focus of the second credit counselling session?

The second session centers around planning for the future. It involves discussing goals, healthy shopping habits, the importance of savings, and setting financial objectives to help clients avoid financial disruptions in the future.

4: What should I expect during credit counselling sessions?

During two video conferencing sessions, the first focuses on reviewing the client's financial situation and budget, addressing issues leading to insolvency. The second session concentrates on financial management, discussing potential disruptions and preparing the client for informed decision-making.


5: What topics are covered in the financial education aspect of credit counselling?

Credit Counsellors help clients understand the circumstances leading to insolvency and equip them with tools to prevent future financial issues. The focus includes building a strong foundation to manage unforeseen disruptions and avoid financial challenges.

Related Blog:

Financial Counselling: The Importance of Credit Counselling Session

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