Preparing to Meet Initially With a Licensed Insolvency Trustee
Navigating through financial challenges can be daunting, and getting professional help can be a crucial step towards recovery. In this context, a Licensed Insolvency Trustee (LIT) can be your beacon of hope, providing you with personalized guidance to help you regain your financial stability. Here’s what to look forward to during a free consultation with a LIT.
1. Introduction to Insolvency Proceedings
During your first interaction, the LIT will introduce you to the various aspects of insolvency proceedings, such as personal bankruptcy and consumer proposals.
Personal Bankruptcy
Often referred to as a ‘reset button’, personal bankruptcy allows you to eliminate most of your debts within a period of 9-21 months.
Consumer Proposals
A consumer proposal, on the other hand, is akin to a ‘settlement offer’, where you aim to repay a fraction of your debt, without necessarily paying the full amount.
2. Understanding the Implications
Like all compromises, insolvency proceedings come with their own set of responsibilities and repercussions. These can range from regular payments to your creditors, a temporary drop in your credit score, and potential loss of possession over non-exempt assets, depending on your specific circumstances.
3. Regulatory Aspects of Insolvency Proceedings
In Canada, both bankruptcies and consumer proposals are overseen by a federal department called the Office of the Superintendent of Bankruptcy (OSB). LITs, who are licensed by the OSB, are the only professionals authorized to administer bankruptcy or consumer proposal proceedings.
4. Free Consultations
Most LIT firms offer free consultations to discuss your debt relief options. These consultations equip you with the necessary information to make an informed decision, without obligating you to proceed with a bankruptcy or consumer proposal.
5. Customized Approach
The process of debt relief is unique to each individual’s situation. So, your experience may differ from those of others who have undergone insolvency proceedings.
6. Consultation Procedure
During the consultation, the LIT will ask a series of questions to understand your unique financial situation.
Information Gathering
The LIT will review your assets, debts, income, and expenses to provide accurate advice on what a bankruptcy or consumer proposal would entail for you.
Question and Answer Session
Feel free to ask any questions you may have. The goal is for you to understand the process thoroughly and be confident in your decision.
7. Non-Judgmental Interaction
Discussing your financial situation with a stranger can be overwhelming. However, LITs aim to approach each client with understanding, compassion, and authenticity, without any judgement.
8. Exploring Alternative Solutions
Sometimes, the best solution might lie outside the realm of bankruptcies and consumer proposals. Other options could include consolidation loans, accessing equity in your property, or using credit counselling services.
9. Moving Forward
If you decide to proceed with a bankruptcy or consumer proposal, the LIT will guide you through the process, ensuring that all regulatory requirements are met.
Documentation
You will be asked to provide a list of assets, account information, and a copy of your ID for proper documentation.
Review and Confirmation
The LIT will review your options one more time before filing any legal documentation, making sure you’re completely comfortable with the information provided.
10. Flexibility
The timeline from consultation to signing documents can vary, depending on your situation. The LIT will move at your pace, ensuring the process is tailored to your needs.
Remember, each LIT firm has its unique processes, but the common goal of thoroughly reviewing your options and providing solutions for your debt remains the same.
If you still have queries about the bankruptcy or consumer proposal process, or wish to book a free, confidential consultation, please contact a LIT firm near you. They look forward to helping you find the right debt solution.
