Identifying the Right Time to Consult a Licensed Insolvency Trustee (LIT)
When you’re grappling with debt, it can be tricky to navigate the sea of financial relief options available. More so, knowing when to engage a Licensed Insolvency Trustee (LIT) can be a daunting task. This article will guide you on when it’s appropriate to call a LIT and what they can offer you.
Understanding the World of Debt Solutions
It’s important to understand who can help you with your financial woes. Let’s dive in and learn about LITs, credit counsellors, and debt consultants.
Licensed Insolvency Trustees (LITs)
The Office of the Superintendent of Bankruptcy Canada (OSB) licenses Licensed Insolvency Trustees (LITs). These financial experts follow a strict legal and ethical framework to provide you with comprehensive knowledge about your debt relief options. They are the only professionals authorized to administer two legal solutions – consumer proposals and insolvency proceedings.
Credit Counsellors
Credit counselling services come from both for-profit and non-profit agencies. These counsellors offer advice on credit and debt management, budgeting, and more. They can also create a debt management plan for you. However, unlike LITs, their qualifications may vary, and they are not federally regulated.
Debt Consultants
Debt consultants typically collaborate with debt settlement companies to negotiate a settlement with your creditors. They operate in a less regulated environment than LITs, and their services and fees can sometimes be misleading. It’s advisable to review these federal guidelines before dealing with a debt settlement company.
Evaluating Your Need for Debt Assistance
Debt Management Solutions
Licensed Insolvency Trustees offer free consultations to discuss your financial situation. They can guide you through various debt solutions, referring you to another trusted professional if required.
Credit counsellors can develop a debt management plan for you. However, there’s no guarantee that all your creditors will agree to the terms. If a creditor chooses not to participate, they can still pursue legal action if you can’t keep up with your payments.
Debt consultants provide a debt settlement plan where you make a lump sum payment, typically less than your total debt. However, this plan is not legally binding, and there’s no guarantee your lenders will accept it.
Debt Relief through Insolvency
Only a Licensed Insolvency Trustee can administer a consumer proposal or bankruptcy, two legal forms of debt forgiveness governed by the Bankruptcy and Insolvency Act. These options offer legal protections, freezing all interests, and ending all legal actions against you.
Finding the Right Debt Solution with a Licensed Insolvency Trustee
Regardless of your debt situation, a Licensed Insolvency Trustee can help you identify the best solution. They offer free, obligation-free consultations to help you understand your options. If you’re seeking the best way to resolve your debt, consider scheduling a meeting with an LIT today.
Remember, finding the right debt relief solution is a journey, and it’s okay to take your time. Don’t be afraid to seek help when you need it. After all, reaching out to a Licensed Insolvency Trustee (LIT) can be your first step towards achieving financial peace of mind.
