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Do Licensed Insolvency Trustees Reduce Debt?

 

What Can Licensed Insolvency Trustees Do About Debt?

When you have a lot of debt, it becomes difficult to think of anything else. Debt can be overwhelming. It can take over your every thought, make it difficult to live your daily life, interrupt your sleep, and even cause health problems. Licensed Insolvency Trustees know this and they can help.

Do Licensed Insolvency Trustees reduce debt? No, not personally. However, they have received training and are licensed by the Office of the Superintendent of Bankruptcy to inform people of their debt relief options as well as administer insolvency processes. What does this mean? It means that Licensed Insolvency Trustees can help you figure out what to do if you’re struggling with debt.

A lot of people who have large amounts of debt feel hopeless. Since many creditors charge very high interest rates, it can be very tough to pay off debt even if you’re focused and committed. Each month that you carry a balance, you’re charged more interest. If you can only afford to make small payments on your debt, these interest costs quickly add up. Over time, you could even find yourself paying more in interest than you initially borrowed!

If you fall behind on debt payments, the situation can feel even more dire. Many people stop opening their mail because they can’t pay their bills anyway, and they don’t answer their phones because they don’t want to speak with creditors or collection agencies. Licensed Insolvency Trustees understand how dealing with debt can be tough and they want people to know there are options.

Licensed Insolvency Trustees Provide Information and Administer Processes That Can Help

Most Licensed Insolvency Trustees offer a free consultation where they can look at your financial situation in detail. Once they know more about your debt, your assets, and your income, Licensed Insolvency Trustees will give you information on the debt relief options that are available to you.

Each person’s financial situation is unique. That means there is no “one size fits all” option that is perfect for everyone. However, there are options available to nearly anyone in any situation. Even if you feel like your situation is hopeless and there is nothing you can do, Licensed Insolvency Trustees can still provide you with choices that can improve your financial situation long-term.

Licensed Insolvency Trustees are required to follow a strict code of ethics

One aspect of this code that is crucial is that they must inform people of all the options available to them following a consultation. This means that trustees will give you information on every debt relief process, even those the trustee doesn’t administer themselves. This is different from many other financial professionals who may only give you details on the options they know best.

LITPro can help you to Reduce Your Debt By Up To 80%

    • You can keep your car, home, and RRSP
    • Stop harassing creditor calls immediately
    • Improve personal cash flow quickly
    • We negotiate your debt and provide a path to financial stability
    • Lowers your payment
    • Works with any level of credit score
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What Licensed Insolvency Trustees Do

In addition to reviewing finances and providing information on debt relief options, Licensed Insolvency Trustees are the only individuals who can administer bankruptcies and consumer proposals in Canada. These legal processes are designed to help people reduce or eliminate their debt and repair their financial lives.

If you are having debt problems and cannot come up with a strategy that makes paying off these debts possible or realistic, completing a consumer proposal or filing for bankruptcy may be the right choice for you.  Licensed Insolvency Trustees will give you all the information you need on these processes, and then it will be entirely up to you to determine as to how you wish to proceed.

A trustee will never attempt to coerce or convince you to choose a certain option. How you proceed with your financial life is entirely up to you.

If you determine that bankruptcy or consumer is the right option for you, the trustee will give you all the information you need and complete the required paperwork which must be submitted to the federal government. Licensed Insolvency Trustees are also responsible for communicating with your creditors when you file for bankruptcy or consumer proposal. They will inform your creditors of the situation and communicate with them as necessary.

As part of these processes, you will need to complete financial counselling sessions. These sessions are held by Licensed Insolvency Trustees and discuss debt, money management, and financial planning. The goal of the sessions is to help people improve their financial lives going forward.

Resources

Resources & Articles For Managing Your  Finances On Your Own

Insolvency: What Does it Mean & Is It the Same as Bankruptcy?

Insolvency: What Does it Mean and Is It the Same as Bankruptcy? What Does Insolvency Mean? When it comes to financial matters, two words you may have heard are the terms “insolvency” and “bankruptcy.” In fact, it’s a common misconception that...

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Jone Than

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Stacy Waller

"I trully appreciate the help and the honesty of everyone I have dealt with so far and am pleased to get out of debt and work towards building my credit back up after this is all over​"

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We value our clients and respect each of them. We understand how difficult is to manage all the debts. You are not alone, we can help you with a debt settlement to solve your financial situation.

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