Allan Marshall & Associates Inc., 506-801-1086
500 St. George Street, Moncton, NB, E1C 1Y3
If you are stuck in a precarious debt situation where it is highly likely for you to not be able to pay off your debts in time, it is a wise move to consult the nearest Licensed Insolvency Trustee (LIT) in Moncton, NB.
LITs are registered professionals, available throughout Canada, who have been appointed by the Office of the Superintendent of Bankruptcy to help people choose the right way to go about their debt repayment.
Allan Marshall & Associates Inc. Moncton, NB Licensed Insolvency Trustee
What happens if I do not hire an LIT and default on my loans?
When you do not settle a debt in time, your creditor can take you to court and acquire a garnishment order against you.
A garnishment is a portion of your income seized for paying off the money you owe.
Once a creditor gets a garnishment order in action, you might essentially be forced into a financial rut and things could turn worse than they were to begin with.
A creditor, especially if it is your own bank, can also freeze your bank account and collect the money owed from your bank balance directly, rendering you virtually helpless.
Such frozen accounts work normally, except you can not withdraw your own money until all your debts are paid for.
All these financially scary scenarios can be avoided by hiring a Licensed Insolvency Trustee to formulate a debt repayment plan for you.
How exactly can an LIT rescue me from my predicament?
Licensed Insolvency Trustees can either file a consumer proposal or file for bankruptcy, on your behalf, to prevent your creditor from filing a lawsuit against you.
Even if a lawsuit has already been filed and a court order issued, an LIT can get these orders suspended by acting within the legal framework.
In other words, LITs can save you from an ongoing garnishment or redeem your frozen bank account.
An LIT can sit down with you and your creditor and lay down a repayment agreement, also known as a consumer proposal.
This kind of proposal involves periodical fixed payments to the creditor.
This is the safer option of the two as no personal assets are at risk.
The second option is that of filing for bankruptcy.
This is especially preferred when you can not promise regular payments to your creditor.
After a bankruptcy is filed, your personal assets are used towards clearing your debt.
Each of these two options is more appropriate for a certain kind of case.
The expertise of an LIT can be the difference in figuring out which one is right for you.