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How Licensed Insolvency Trustees Help with Debt Problems?

 

What Licensed Insolvency Trustees Do to Resolve Debt Issues

Debt can be incredibly tough to handle. If you’re dealing with a large amount of debt, it can feel overwhelming and sometimes even hopeless. However, there are options out there and Licensed Insolvency Trustees (LITs) are there to help you understand them.

When debt collectors are calling, bills are adding up, and stress and anxiety are rising, it can be easy to feel like there is nothing you can do to fix your situation. Meeting with a LIT will help you understand the options that are available to you so you can make an informed choice for improving your financial future. Most Licensed Insolvency Trustees offer a free consultation.

What Licensed Insolvency Trustees Do During the Free Consultation

When you meet with a trustee, they will review your financial situation. This means they’ll look at your debts and determine what issues you are having with debt repayment. This means it is a good idea to bring all of your relevant financial information with you to the meeting, such as information on your debts, assets, income, and more.

Once the trustee has reviewed your situation, they will then let you know what financial options are available to you. Trustees are required by law to provide people with details on all available options, not just those that the trustee themselves can administer.

A licensed insolvency trustee will never pressure you into choosing a certain option

This is different from many other financial professionals who may only give you information on the options that they are most familiar with. A trustee will never pressure you into choosing a certain option. It is always completely up to you to decide how you would like to proceed.

While trustees are able to administer insolvency proceedings, meeting with a trustee does not necessarily mean you will be filing a process under the Bankruptcy & Insolvency Act.

However, if you determine that a process like a consumer proposal or a bankruptcy makes the most sense for your situation, the trustee will collect the required information from you and prepare the necessary documents. These documents need to be filed with the federal government.



Services that Licensed Insolvency Trustees Provide

Licensed Insolvency Trustees are the only professionals who are authorized to administer insolvency proceedings in Canada. This means they can administer bankruptcies and consumer proposals. As mentioned, if you decide to proceed with either of these processes, the trustee will complete and file the appropriate paperwork.

They will also notify your creditors. In the case of a consumer proposal, the trustee will record votes to determine if the proposal was accepted by your creditors.

As one of your duties during a bankruptcy or consumer proposal process, you will be required to attend financial counselling sessions. The trustee will provide these sessions, which are designed to help you understand debt, budgeting, and financial management.

Trustees do not work on behalf of creditors. Trustees are licensed by the Office of the Superintendent of Bankruptcy to ensure that the rights of both debtors and creditors are respected and protected during insolvency processes. They are also bound by a strict code of ethics and required to act truthfully and honestly at every stage.

How Licensed Insolvency Trustees Assist with Debt Issues

During a bankruptcy or consumer proposal process, the trustee will be responsible for all communication with your unsecured creditors. In fact, once these legal processes are started, your creditors are not legally able to take any action to collect on the debts.

This includes sending a collection agency after you or taking any sort of legal action. If legal action had started prior to the bankruptcy or proposal process, this action must stop. This can be a big relief to people who are overwhelmed by debt.

When it comes to working with Licensed Insolvency Trustees, it’s important to choose trustee you trust and who you can work with. You will need to be open and honest about your financial situation with the trustee and building a relationship with them is important as you will be working with them throughout the entire insolvency process.

When you sit down for the initial consultation, be sure to ask the trustee any questions that you may have. Use this opportunity to learn as much as you can about debt relief options as well as to determine how well you get along with the trustee.

Resources

Resources & Articles For Managing Your  Finances On Your Own

Why You Should Never Pay A Collection Agency

Why You Should Never Pay A Collection Agency

Paying a collection agency will not measurably improve your chances of collecting the debt. The only thing that paying a collection agency will do is to enrich the agency and make it more difficult for you to collect the debt