While some people know Licensed Insolvency Trustees (LIT) by their previous title, Trustee in Bankruptcy, LITs are dedicated professionals specializing in consumer and commercial insolvency in Canada.
LITs are federally regulated professionals you can trust to provide advice, services, and solutions for your personal or business debt problems. With the help of experts, you can make more informed decisions about your finances to support a healthy financial future.
Trustee in Bankruptcy to Licensed Insolvency Trustee
An LIT is licensed by the Office of the Superintendent of Bankruptcy (OSB), a branch of the federal government, to provide debt management and relief services to Canadians. They are the only professionals authorized to administer bankruptcies, consumer proposals, and other regulatory debt processes.
LITs undergo rigorous training and education in financial and related legal matters relative to bankruptcy and insolvency and the ethical principles governing these proceedings.
Replacing the term “bankruptcy” with “insolvency” is more inclusive, reflecting that trustees do more than just provide bankruptcy services. Licensed trustees can also arrange:
- Debt & credit counselling
- Debt consolidation
- Debt repayment planning
- Consumer or business creditor negotiations
- Commercial viability assessments
- Personal or business bankruptcy protection
- Consumer & commercial proposals
The term “licensed” was incorporated into the professional title to reflect the position and promote professional regard for the role while helping many Canadians to discern the differences between a licensed and an unlicensed shadow provider more accurately. You should only seek solutions from a licensed insolvency trustee for your financial struggles leading to debt solutions related to your specific situation.
What Does a Licensed Insolvency Trustee Do?
As a first task, a LIT will meet with you to review your financial situation, evaluate the cause of your financial difficulties and advise you about your debt relief options, including:
- Investigating the creditor’s claims about what you owe to confirm that they are valid
- Helping you decide on a debt management solution
- Preparing and sending the documentation necessary, whether you choose a consumer proposal or personal bankruptcy
The LIT will then help prepare all necessary documentation and file a case with the OSB.
Once the official documents are in place (e.g., a consumer proposal is deemed approved), your LIT will administer the bankruptcy or proposal, including:
- Liquidating non-exempt assets and distributing funds to creditors (some are exempt from seizure according to provincial and federal statutes)
- Distributing the necessary funds to your creditors by making payments to your creditors if you declared bankruptcy or oversee the process if a consumer proposal is in place
If the debt solution you select requires that you undergo mandatory credit counselling, which is the case for bankruptcy and consumer proposals, then your trustee will provide sessions for you, which include strategies such as:
- Managing money
- Developing a budget
- Understanding credit scores and reports
- Preventing increasing cycles of debt
Your LIT can also provide access to mediation and help with negotiation if there are any disputes (e.g., about any surplus income payments in bankruptcy situations).
The LIT must also evaluate your conduct before and during your bankruptcy or consumer proposal. They will determine when to make the discharge application if you are undergoing bankruptcy or confirm your consumer proposal has been completed.
Ultimately, LITs provide comprehensive resources and support to help you make informed financial decisions and regain financial stability after your debt has been addressed to avoid further financial problems in the future.
Why Do You Need to Work with a LIT?
Overcoming your debt can be an immense undertaking you do not need to do alone. The most significant benefits of seeking the advice of a LIT include:
- Having a full range of options: While many people assume bankruptcy is their only option, a LIT can take a comprehensive look at your complete financial situation and recommend a range of options to manage your debt.
- Dealing with creditors directly: Once documents are filed, you no longer have to deal with creditors, and your LIT will take over communication directly.
- Supportive resources: Learn healthy financial tactics to reduce the risk of falling into debt again.
LITs are knowledgeable and experienced professionals governed by a code of ethics to guide you through the process and confirm that everything is done correctly.
Contact the Debt Help Professionals at A.C. Waring & Associates
Working with a licensed insolvency trustee can be incredibly beneficial if you are struggling with debt and considering filing for bankruptcy or consumer proposals. They are trained professionals with specialized knowledge in debt management and relief who can provide personalized guidance throughout the process.
If you need debt relief in Edmonton and the surrounding area, contact A.C. Waring & Associates for qualified advice. You can contact us today online or by calling 1-800-463-3328 or 780-424-9944 and move closer to financial stability and a debtfree® future.