When you find yourself struggling to make a mortgage payment, or finding that you’ve missed a payment on your car loan, it can be an overwhelming feeling when creditors start hounding your phone.
A licensed insolvency trustee can help mitigate these phone calls, clear up any questions you have, and counsel you through your financial decisions and procedures while offering fair advice to both you and your creditors.
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What exactly is a trustee?
A Licensed Insolvency Trustee (LIT) is a highly qualified debt professional that is federally regulated and licensed by the Office of the Superintendent of Bankruptcy of the Canadian government to administer bankruptcy proceedings.
Yes, it’s a mouthful, but in shorter, layman terms, a LIT adheres to a strong code of ethics and strict guidelines to ensure that people going through bankruptcy or who have filed a consumer proposal receives financial counseling.
They also help creditors from pursuing you once you have sought them out, and this forces the creditors to deal directly with the LIT.
This means less stress for you, and stricter legal guidelines for the creditors as well.
How much does a Licensed Insolvency Trustee cost?
Because it is government-mandated, the salary of a LIT is also federally regulated.
There is no price gouging, so you can expect to pay a set fee for each step of a process.
The trustee fees are calculated based on the funds from the individual bankruptcy estate or consumer proposal, so it will not vary based on the trustee chosen.
Will a LIT help my financial scenario?
Are you uncertain how a trustee can help you through your bankruptcy procedures or when dealing with a consumer report claim?
You may want to think again.
Being hounded by creditors all day and night is not only annoying, but it’s also stressful and anxiety-inducing.
As soon as you turn to a trustee, those calls are directed to the LIT, and all procedures go through them.
No more countless phone calls, and you can rest easier.
Something to consider in addition is that because a trustee is a wealth of financial knowledge, they may have bankruptcy alternatives to discuss with you and help you through.
Instead of throwing in the towel, a LIT will counsel you through all your options, highlighting the ones that may benefit you the most, and be the best for your credit and debt.
Evaluating your unique financial scenario and assisting you through financial issues and legal procedures is what a trustee is an expert in.
Ultimately, if you decide together that filing for bankruptcy is the right choice, a trustee will guide you through the multiple steps so that you can be discharged from your bankruptcy as quickly as possible.
In addition, they will help you understand the Insolvency Act of Canada.
What does meeting with a Licensed Insolvency Trustee look like?
During your initial consultation, your trustee will help review your financial situation, typically with no obligation or fee.
This is where your financial counseling really begins, and where you can start to breathe a sigh of relief that you are finding the debt relief help you need.
At this point, the licensed trustee can explain the details of options that are available for your financial situation, which may range from proposals, to contacting loan co-signers, to discussing the possibility of a bankruptcy.
If you feel over your head, setting a meeting with a trustee is a fantastic place to start so you can have complex legal issues explained more directly.
Since the legal proceedings surrounding debt and financial issues can be complex, using someone with substantial knowledge who is governed and overseen by the Canadian government will likely smooth out any concerns and questions you may have.
The first meeting with a licensed trustee is a triage, but over time, your financial situation can begin to be repaired completely with their help.
Instead of thinking you can solve your debt issues yourself, consider putting a knowledgeable expert in your corner that will ensure your rights and your creditor’s rights are respected.
As a reminder, a debt counselor does not have the freedom that a LIT does and can not perform the same duties, so it is important to do your research to find the appropriate designation for your financial circumstance.
At Bankruptcy Canada, we always work to provide you the best professional advice and expert financial and debt knowledge available, as well as some of the best licensed insolvency trustees all across Canada.