A Licensed Insolvency Trustee, or LIT, licensed by the federal government, is the only professional authorized to file consumer bankruptcies and proposals. As of 2016, Bankruptcy Trustees in Canada have been renamed Licensed Insolvency Trustees, as they deal with more procedures than just bankruptcies.
So, the initial step is to identify whether you have a debt problem.
Here are a few signs that you can benefit from talking to a Licensed Insolvency Trustee:
- You have several credit account bills, making it difficult to keep track of their payment dates.
- The amount you must pay in the lowest monthly credit payments is becoming overwhelming.
- You have started new credit accounts to make payments on other credit accounts
- You have skipped payments on some of your credit accounts
- You avoid answering your phone as it is a call from a credit company or collection agency.
- You have been refused new credit
- Your debt situation leaves you sleepless or anxious.
A Licensed Insolvency Trustee can recommend improvements in your financial situation if you have encountered one or more of these signs.
What Can a Licensed Insolvency Trustee Do for You in a Bankruptcy or Consumer Proposal?
Licensed Insolvency Trustees can help you thoroughly and efficiently navigate various debt solutions. Licensed Insolvency Trustees are proficient debt consultants who advise on debt management, draft consumer proposals for creditors, assist with Bankruptcies, and negotiate informal debt settlements.
A LIT communicates directly with your creditors on your behalf once you file bankruptcy or submit a consumer proposal, so you no longer have to worry about disturbing phone calls from creditors or wage garnishments. With a Licensed Insolvency Trustee, you can ensure that no legal action or collections from unsecured creditors will proceed.
Here are some favorable aspects of meeting a Licensed Insolvency Trustee:
- Your first meeting with a LIT is free of cost. This is a chance for you to meet them, discuss your circumstances in general terms, and see if you and the Licensed Insolvency Trustee are a “good fit.”
- Bring along some details about your present financial position to discuss with the Licensed Insolvency Trustee at your first meeting. Thus, you would have a fruitful discussion with all possible options for moving forward into a more promising financial future.
- Licensed Insolvency Trustees do not share personal or financial information with anyone.
- A LIT never judges you based on your financial situation, as each person’s plight is different.
Suppose you hire the Licensed Insolvency Trustee to assist you with a bankruptcy or consumer proposal. In that case, you’ll meet again to provide them with complete data on your debts, income, and assets. They will explain the procedure and schedule the paperwork for the Office of the Superintendent of Bankruptcy. Thus the process starts!