When a person opts for a consumer proposal or bankruptcy, the law requires them to attend 2 counseling sessions. These sessions are there to help a person determine the reasons why they are in financial difficulty and to provide them with tips and advice on how to better manage their financial situation in the future.

1st consultation session:

  • Timeline of the 1st session: Between 10 and 90 days after the date of bankruptcy or consumer proposal.
  • Purpose: Establish a personalized and realistic budget.
  • Points discussed: The counselor will confirm that the debtor understands the purpose and importance of a budget. The counselor will then review the debtor’s budget model with them to ensure it is complete, realistic, and takes into account their particular situation.

2nd counseling session:

  • Timeline of the 2nd consultation: 30 days after the 1st session and before the end of the case.
  • Purpose: Plan the future after bankruptcy, by providing advice on financial goal planning, establishing good spending habits, and ultimately, responsible use of credit. Also, there will be a discussion on tips for restoring credit, and answering questions about the “post-bankruptcy” period.
  • Points discussed: The counselor will confirm that the debtor understands all the essential aspects of the topics covered in the documents provided to them. The counselor will then review the debtor’s Financial Goal Setting Tool and work with them to ensure their goals are SMART (Specific, Measurable, Achievable, Realistic, and Timely), and develop an appropriate plan to achieve these goals.

In conclusion, the mandatory consultation sessions provide help, advice, and education on good financial management, prudent use of consumer credit, and good budgetary practices. Finally, the cost of these sessions is included in the cost of bankruptcy or proposal. Therefore, one more reason to be fully invested and make the most of it!