What To Look For In A Licensed Insolvency Trustee

What is a licensed insolvency trustee?

A licensed insolvency trustee, also known as a LIT, is a professional who specialises in providing advice and working with individuals or companies that are struggling to pay off debts.

Licensed insolvency trustees are federally-regulated, and they help people to explore options and make well-informed decisions to get out of debt.

If you’re having difficulties paying off debts, or you can’t afford to pay your bills and your debts are soaring, seeking advice from a trustee has multiple benefits.

A licensed insolvency trustee provides a range of services and they can help you go through the different debt relief options open to you, make a decision about which course to take and offer recommendations based on your individual circumstances.

LITs are regulated federally, and the fees they charge are also set by the federal government.

All LITs in Canada are qualified professionals who have been licensed by the Office of the Superintendent of Bankruptcy.

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What do licensed insolvency trustees do?

A licensed insolvency trustee provides tailored advice for individuals who are finding it difficult to cope with debts.

These professionals are authorised to undertake regulated proceedings to help people get out of debt, and they take care of overseeing processes, including filing a consumer proposal or bankruptcy.

A trustee will liaise with your creditors on your behalf, and they will be responsible for collecting and collating documentation and filling in and submitting forms.

A trustee will always advise individuals based on their circumstances, highlighting potential options and explaining what they entail and how they could benefit the client.

In Canada, the number of people filing for insolvency increased by over 10% in the 12-month period leading up to January 2020.

What to look for in a licensed insolvency trustee

For many people, the prospect of filing for bankruptcy or drawing up a consumer proposal is incredibly daunting.

At a difficult time, it’s important to be able to take advantage of expert advice and to work alongside a trustee you feel comfortable with.

There are hundreds of trustees in Canada, so how do you go about choosing the right one for you?

Here are some tips to help you make a decision:

  • Customer service and courtesy

Every individual should be treated with respect and courtesy when looking for a licensed insolvency trustee.

From the moment you make the first phone call to the meetings you have to discuss which course of action to take, it’s critical that you feel respected and that you are treated with dignity.

You should never be made to feel embarrassed or ashamed about your financial situation.

If you meet with a trustee, and you don’t feel that you have been treated well, don’t hesitate to look for a different trustee.

There is no obligation to choose the first professional you meet.

  • Clarity

If you’ve never been through the process of filing a consumer proposal or you’ve never considered bankruptcy before, it’s natural to have questions and concerns and to find the terms and jargon confusing.

A trustee should provide clarity, and they should take the time to explain how processes unfold, what each stage entails and how different debt management options could benefit you.

You should never feel afraid to ask questions, no matter how silly they may seem to you.

It’s worth remembering that your trustee will probably have answered the same questions many times before.

  • Time

Clients should never feel like they have to rush to make a decision about their financial future.

A good trustee should provide detailed information, offer recommendations and advice and then give their client time to think about and digest conversations before making a decision.

  • Consistency

Customer service should be a priority throughout the process of filing for bankruptcy or putting a consumer proposal forward.

It can take a long time to get from the start to the finish line, and it’s important that clients feel like they are being well-cared-for at all times.

It’s difficult to face up to the fact that your debt problems have got out of control, and many people need advice, guidance and support during the process of filing a consumer proposal or bankruptcy.

Trustees should be there to answer questions, take calls and address concerns.

  • Communication

Communication is critical at a time when most people will be feeling anxious.

It’s understandable to have questions at different stages of the process, and to want clarity and reassurance.

Trustees should be willing to respond to clients promptly and to keep channels of communication open to facilitate conversation and ensure individuals are up to speed with what is going on and what they can expect in the weeks and months ahead.

  • Recommendations

Many of us take comfort from choosing businesses and organisations based on the recommendations of others.

If you have colleagues, relatives, friends or neighbours who have tackled financial issues in the past, it’s a good idea to ask their opinion and find out more about independent trustees or firms.

You can also read reviews online.

If you choose to do this, make sure the testimonials are verified.

It’s also crucial to note that all licensed insolvency trustees in Canada are regulated by the federal government.

Trustees should be able to prove their status to you.

You can also find licensed trustees through the Office of the Superintendent of Bankruptcy website.

Summary

Licensed insolvency trustees (LITs) are federally-regulated professionals who specialise in helping people who cannot afford to pay bills or get out of debt.

If you’re looking for a trustee, it’s important that you feel comfortable and that you’re able to ask questions and raise concerns.

Your trustee should take the time to provide you with detailed information about all your options and they should be there to help you make a decision and to simplify the process of filing a consumer proposal or bankruptcy.

If you’re looking for an experienced trustee, don’t hesitate to contact us today.

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