Experiencing financial distress can be daunting and overwhelming. However, a Burlington family regained financial control by filing for bankruptcy, demonstrating that there’s always a way out of debt. This article provides an insight into how bankruptcy services offered by Licensed Insolvency Trustees (LIT) can provide relief from financial dilemmas.
Understanding Licensed Insolvency Trustees
Licensed Insolvency Trustees are federally regulated professionals who have the expertise to offer diverse debt relief solutions. They provide confidential, empathetic, and non-judgmental services, guiding individuals and families on their path to financial recovery.
Role of LITs
LITs can help you explore various options to avoid personal bankruptcy, including consumer proposals and debt consolidation. They work closely with you to understand your unique financial situation and recommend the best course of action.
Exploring Debt Relief Options
There are multiple ways to regain control over your finances. The best option depends on your unique financial situation and your ability to repay the debts.
Consumer Proposals
A consumer proposal is a legal agreement that significantly reduces your debt. This interest-free solution stops wage garnishment, legal action, and collection calls, allowing you to retain your assets. Monthly payments are decided based on your income, expenses, and your ability to pay.
Personal Bankruptcy
Personal bankruptcy is suggested when no other debt repayment options are viable. The trustee will guide you through the process, ensuring your best interests are taken care of.
Debt Consolidation
Debt consolidation can be a risky approach, especially if you have missed payments or received collection calls. It requires a spotless credit history, steady income, and equity in your home or a co-signer.
Credit Counselling
Credit counselling can help you develop a better relationship with money. Trained professionals can provide guidance on managing your finances and breaking the debt cycle.
Dealing with Specific Debts
Different types of debts may require distinct strategies for resolution.
Student Loan Debt
If you declare bankruptcy seven or more years after ceasing to be a student, your student loans will be eligible for discharge.
Credit Card Debt
LITs can help consolidate your credit card debt, eliminate interest charges, and reduce the total by up to 80%.
Income Tax Debt
LITs can negotiate with Revenue Canada to accept a reduced amount on your outstanding taxes and halt interest charges and penalties.
Payday Loan Debt
Payday loans have high interest rates and can trap you in debt. Trustees can help you evaluate the best option to escape this trap.
Mortgage/Car Loan Debt
Mortgage and car loans are examples of secured debt. Consumer proposals can help manage these payments.
Loans/Line of Credit Debt
If you’re struggling with payments for line of credit or other personal loans, LITs can help you explore options.
How LITs Help
LITs assist with compassion, understanding, and expertise, guiding you at every step of your journey to financial recovery.
No Cost Consultation
Consultations with LITs are free. They provide you with knowledge and legal protection, explaining all available debt options.
Certified Professionals
LITs are not only licensed but also regulated by the Office of the Superintendent of Bankruptcy (OSB), ensuring they uphold high professional standards and ethics.
Conclusion
Regaining financial control is possible, even when the situation seems dire. A Burlington family regained financial control by filing for bankruptcy, proving that with the right guidance and support, a fresh financial start is achievable. Licensed Insolvency Trustees play a crucial role in this process, guiding families through their financial struggles towards a debt-free future.
