The uncontrollable personal debt problems are always a trap for Canadians. In certain circumstances, bankruptcy might be the only option to recover from your debt problems and start your financial life afresh. But when proceeding with bankruptcy, you need the support of a Trustee to monitor the whole process. When researching various possibilities, you might have noticed that the term “Licensed Insolvency Trustee” has been used instead of the more traditional “Bankruptcy Trustee” in recent years. Let us now glance at the difference between these two terms and the role of a Trustee in solving your debt problems.
Are Licensed Insolvency Trustees and Bankruptcy Trustees the same?
The Office of the Superintendent of Bankruptcy summoned licensed individuals to recognize themselves as Licensed Insolvency Trustees on December 15, 2015. Although the services offered by the “Trustees” remain the same, the new name more accurately reflects how they can assist you in resolving your debt problems.
Some of the reasons for the name change were:
- Need to defend against the misuse of the “Bankruptcy Trustee” designation by certain unlicensed providers.
- The term “Licensed” gives solid evidence of the Trustee’s position and represents the high level of training involved and the strict code of conduct adhered to.
- To help communicate to the individuals the wide arrange of services like Consumer Proposal, Debt Consolidation, and Credit Counselling offered by a Licensed Insolvency Trustee. Before the name change, many citizens were under the impression that a Bankruptcy Trustee could only provide bankruptcy to solve their debt problems.
Role of a Licensed Insolvency Trustee (LIT) in Filing a Bankruptcy
- The LIT confirms whether bankruptcy is the only option open to you if your debts have escalated beyond your ability to manage the same.
- The LIT explains the benefits and consequences of bankruptcy, supporting you in making the best choice.
- The LIT is an intermediary between you and your creditors and governs any meetings required to discuss your bankruptcy.
- The LIT helps you get through all the necessary paperwork before filing for bankruptcy.
- The LIT ensures that you meet your commitments within the first nine months of filing bankruptcy to get an automatic discharge.
- The LIT is responsible for the two counselling sessions to help you get your financial life back on track.
Role of a Licensed Insolvency Trustee in Filing a Consumer Proposal
- The LIT acts as Proposal Administrator acting on your behalf when filing a Consumer Proposal.
- The LIT helps you develop repayment terms that do not require you to pay off 100% of the principal while also waiving interest, fees, and charges.
- The LIT deals with your creditors and bargains the proposed terms with them.
- The LIT collects the payments from you and then transfers them to the creditors.
- The LIT is also accountable for the two credit counselling sessions that can help you to manage your debts in the future and get your financial life back on track.
Are you looking for a Licensed Insolvency Trustee in Canada?
In simple words, a Licensed Insolvency Trustee analyses your income, expenses, and debts to decide whether a consumer proposal or bankruptcy is the most suitable option to solve your debt problems. The team of licensed experts guarantees that you understand all your possibilities and make an informed decision that allows you to take control of your debt and build a new start for the future. Contact Dana MacRae – Licensed Insolvency Trustee, without any second thoughts.