A Licensed Insolvency Trustee (LIT) is a trained, qualified professional who is highly educated to offer various debt solutions. In Canada, it is required by law that you must work with a Licensed Insolvency Trustee when filing a consumer proposal or bankruptcy.

Suppose you find yourself in a difficult financial situation. A Licensed Insolvency Trustee can help you in more ways than just one. They offer a range of services as part of insolvency proceedings. Some services include debt management counselling, the selling of assets and distribution of the net proceeds to creditors, negotiating and drafting consumer proposals, and administering documentation. Their profession is well-rounded and highly regulated. They hope they can help lead you to financial success.

When you need protecting

Suppose collection agencies are hounding you, you cannot pay your bills as they become due, and your debt is spiraling out of control. You may wish to contact a Licensed Insolvency Trustee and discuss your legal options to deal with debt. As regulated under the Bankruptcy and Insolvency Act, legal actions against you (unless relating to child or spousal support) are automatically stayed once you have filed for bankruptcy or a consumer proposal. You are protected from actions such as wage garnishments (except for child and spousal support) or the dreaded phone calls from collection agencies. When you are in an insolvency proceeding, your Licensed Insolvency Trustee will directly communicate with your creditors on your behalf. They are the mediator between the two parties (debtor and creditors). A LIT ensures rules are being followed and the process is reasonable and respected. When dealing with a financial crisis, it is beneficial to know you have a professional and regulated individual overseeing your case. A LIT will work with you to get you back on your feet.

When you don’t know what to do

Whether it is a personal financial circumstance or corporate financial troubles, it is often difficult to determine the best approach or know where to start. You may feel like you have exhausted all of your options and do not know where to turn next. Contacting a Licensed Insolvency Trustee is a good next step. A Licensed Insolvency Trustee will assess your financial situation and offer solutions suited for your particular case. Should you choose to file a bankruptcy or consumer proposal, they will thoroughly assist you through the legal process with confidence and assurance. Licensed Insolvency Trustees offer a confidential, free initial consultation. Therefore, speaking with a Licensed Insolvency Trustee will allow you to gain some clarity.

Through the process

The process of filing for bankruptcy or a consumer proposal begins by contacting a Licensed Insolvency Trustee. The Licensed Insolvency Trustee will collect information about your financial situation and conduct an initial assessment. The Licensed Insolvency Trustee will inform you of your options, including what each option entails and their pros and cons. Should you choose to file a proposal or bankruptcy, the Licensed Insolvency Trustee will assist you in preparing all necessary legal documentation and file them with the appropriate government agency. Only a Licensed Insolvency Trustee can file and administer insolvency proceedings under the Bankruptcy and Insolvency Act. Your LIT will oversee your file, make sure you have completed all of your obligations and duties, and deal with various issues as they arise. Your LIT will issue your Certificate of Full Performance when you complete your proposal’s terms or assist you in obtaining your discharge from bankruptcy.

When you need counselling and advice

One of the most outstanding qualities of a Licensed Insolvency Trustee is that they want to empower you with knowledge and assist you in improving your financial literacy. A Licensed Insolvency Trustee wants to help you with solutions for your current financial difficulties and encourage you to experience financial success in the future. To help prevent the cycle of debt from reoccurring in your life, your Licensed Insolvency Trustee’s firm provides debt counselling for each individual debtor as a part of their insolvency proceedings. The debt counselling will be conducted by a registered BIA insolvency counsellor and the cost of the two mandatory debt counselling sessions is included in your proposal or bankruptcy. The insolvency counselling program can offer various benefits. The benefits include future management solutions to prevent a recurrence of economic instability, such as budgeting techniques, responsible use of credit, positive spending habits, and financial goal planning. The goal is to help you understand where or why issues occur and provide you with the right tools to make positive financial decisions and handle financial challenges in the future.