What Can I Expect At A Consultation?

Decoding the Consultation Process: What Should You Anticipate?

When you’re grappling with financial issues and considering the path of insolvency, the initial step generally involves scheduling a ‘Free Confidential Consultation’ with a proficient Licensed Insolvency Trustee (LIT). But what can you expect at such a consultation? This comprehensive guide aims to demystify the process, providing you with an in-depth understanding of what lies ahead.

The Prelude to Consultation

Undeniably, the thought of a financial consultation can be intimidating. You might be apprehensive about the questions that will be posed, the documents you need to carry, or the negative connotations associated with bankruptcy or a Consumer Proposal. However, remember that the primary goal of the consultation is to gather information that helps the LIT understand your financial situation better and recommend the most suitable debt solutions.

Understanding the Process: The Puzzle Analogy

Consider your consultation as a jigsaw puzzle. The LIT’s task is to assemble the pieces of your financial life to get a holistic picture. This methodical approach involves:


Framing the Puzzle:
The LIT gathers general information about your financial situation, akin to assembling the edge pieces of a puzzle.

Grouping the Pieces:
Next, they focus on specific aspects of your finances – your assets, debts, income, expenses, and more. Each of these categories is like a group of puzzle pieces that need to be assembled and connected to the frame.

Assembling the Entire Picture:
After collecting and analyzing all the relevant information, the LIT can present you with a comprehensive view of your financial situation and recommend the most suitable debt solutions.

The Frame of Your Financial Puzzle: Personal and Financial Background

The initial part of the consultation involves discussing the causes behind your financial difficulties. This conversation helps the LIT understand your unique circumstances and tailor their questions accordingly. For instance, if you run a business, they would inquire about the nature of your enterprise and how it impacts your financial situation.

Personal details are also part of the discussion. The LIT needs to know your marital status, whether you have dependents, your housing situation, and your total household income. All these factors significantly influence the kind of debt solution suitable for you.

Grouping the Pieces: Detailed Analysis of Your Finances

Once the general framework is established, the LIT delves into the specific aspects of your finances.

Your Assets

A common fear among people dealing with debt is the risk of losing their assets. However, provincial laws often have exemption amounts for certain assets, ensuring that you are not left destitute.

The LIT will ask for a detailed account of your assets, including investments, insurance policies, recreational vehicles, and potential future windfalls. This information helps them understand what your assets are worth and what is exempt from being claimed by creditors.

Your Debts

The trustee will ask for a complete list of your debts, secured and unsecured.

Your Income

The trustee will ask you about your income. This will determine what options are available to you, and whether you would have to pay surplus income if you went bankrupt.


Once you’ve met with the trustee, you can take some time to think over the information and think about your options.

You’re under no pressure to proceed.

Find Your Personal Debt Relief Solution

Licensed Insolvency Trustees are here to help. Get a free assessment of your options.

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