Is CCDR legal in Canada?

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CCDR operates legally in Canada but dances around the specifics of the Bankruptcy and Insolvency Act. While tempting, their debt relief methods might lack the safety of official protections, as they aren’t licensed insolvency trustees. For more reliable peace of mind, consider vetted pros in consumer proposals and bankruptcies. Reach out if you have any questions.

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Ccdr Legality Question

Is CCDR legal in Canada? I’ve heard about CCDR and want to know if their practices are legal in Canada.

From: Anonymous Question
Location: Richmond Hill, Ontario (ON)
Category: debt settlement

Ccdr Legality Answer

Operating legally in Canada, CCDR is a bit like that offbeat neighbor—interesting but slightly outside the usual norms. While not crossing any legal lines, their approach to debt relief sidesteps the specific guidelines laid out by the Bankruptcy and Insolvency Act. If you’re considering their services, it’s important to stay sharp. CCDR isn’t a licensed insolvency trustee, so the safety net they offer might not catch you in the same way official protections would. They can’t magically make lawsuits disappear, despite what you might hear. It’s like expecting a magician to pull a rabbit out of a shoe instead of a hat—tricky, right? For those seeking genuine peace of mind, sticking with licensed pros who excel in crafting consumer proposals or handling personal bankruptcy could be a path lined with more trust and security. Reach out if you have any questions.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

CCDR, or the Credit Counselling and Debt Resolution industry, operates under the Bankruptcy and Insolvency Act, RSC 1985, c 3 (2nd Supp), which governs insolvency practices in Canada. While CCDR can provide certain services such as credit counseling, their specific practices must comply with applicable regulations.

The practices of debt settlement and management must also adhere to the Consumer Protection Act and the regulations set by the relevant provincial authorities. It’s important to ensure that any company providing these services is licensed and follows the regulations outlined in the regulations of the Bankruptcy and Insolvency Act, particularly sections 7 to 11 of SOR/2007-256, which detail the obligations of debt consultants and administrators.

For more detailed compliance, consumers should refer to the specific provincial legislation that governs credit counseling and debt resolution practices, as these may differ across jurisdictions.

From: OSB Helper

Related Questions to Debt Relief

Given the context of your query, it seems there might be some confusion since “CCDR” is not a commonly recognized term in the context of debt and insolvency in Canada. However, assuming you are referring to common questions related to consumer proposals and bankruptcy, here are the top frequently asked questions in this area:

1. What is the difference between a consumer proposal and bankruptcy?

A consumer proposal is a formal agreement to repay part of your debt, while bankruptcy involves surrendering assets to eliminate debt.

2. How does a consumer proposal affect my credit score?

A consumer proposal stays on your credit record for 3 years and has less of an impact on your credit score compared to bankruptcy.

3. What debts can be included in a consumer proposal?

You can include most unsecured debts such as credit cards, bank loans, lines of credit, tax debt, and personal loans, but not secured debts or certain student loans.

4. How long does it take to complete a consumer proposal or bankruptcy?

A consumer proposal typically takes up to 5 years, while bankruptcy can be resolved in 9 to 21 months.

5. Do I lose my assets in a consumer proposal or bankruptcy?

In a consumer proposal, you keep your assets, but in bankruptcy, you may need to surrender some of your assets to your creditors[1][5][3].

If you have a question about debt see our debt questions or ask your own debt related question.

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