Trustee in Bankruptcy Basics: How to Get Out of Debt With a LIT
One of the most effective ways to deal with severe levels of debt is to file for bankruptcy and you must use a licensed insolvency trustee to go bankrupt.
While this can sound daunting, it can actually leave you with the majority of your assets intact.
Depending on the province that you live in, you could potentially save most of your belongings, your work-related materials and appliances and even your car.
So here’s some helpful information about trustees that you should keep in mind.
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What is a bankruptcy trustee?
Consumer proposals involve relieving you of a certain percentage of your debt (up to 80%) and then requesting that you pay the rest back over several years at a zero-interest cost.
This involves having your trustee negotiate with the creditors to help you strike a good deal.
Speaking to a trustee is one of the best ways to learn more about bankruptcy and also find out how much of your assets you can keep.
There are around 1,000 licensed trustees in Canada.
What makes a bankruptcy trustee useful?
In addition to offering you specialist advice on how to cope with your severe debt, a bankruptcy trustee can shield you from creditors.
If you’re constantly facing harassment and phone calls from a creditor, then a trustee can stand between you and your creditors, forcing them to contact the trustee first before they can get to you.
So if you’re currently facing severe debt, a bankruptcy trustee will both shield you from creditors and help you figure out the best course of action to achieve better financial health.
Bankruptcy trustees will review your financial situation to get a better understanding of your circumstances, but they’ll also help you negotiate with creditors to secure the best deals and give you a much higher chance of successfully relieving you of debt.
When can I contact a bankruptcy trustee?
Ideally, you should be contacting a trustee as soon as possible if you feel that you’re facing financial difficulties and need assistance.
If you’re missing payments, being harassed by debt collectors or are having your wages garnished, then we highly suggest that you get in touch with a bankruptcy trustee as soon as possible.
Keep in mind that it costs nothing to see a bankruptcy trustee.
They will meet you and offer you legal options without requesting a single penny.
If you find that a trustee is asking for money, they are likely not licensed and are running a fraudulent business.
Where can I find a bankruptcy trustee?
If you’d like to speak with a licensed trustee about your financial issues, don’t hesitate to get in touch with us today to learn more.