Need debt help? Speak to a Licensed Insolvency Trustee (LIT)
Are you looking for debt assistance and wondering how to contact a Bankruptcy Trustee? For starters, it’s essential to know that Bankruptcy Trustees were officially renamed ‘Licensed Insolvency Trustees (LIT)’ in 2016. This change was made by the Office of the Superintendent of Bankruptcy (OSB) and provided a name better suited to the role. A Licensed Insolvency Trustee (formerly known as a Bankruptcy Trustee), is licensed to offer debt advice, debt consolidation, consumer proposals, bankruptcy, and more. In Canada, licensed trustees are the only insolvency professionals legally regulated by a governing body. There were several reasons behind the name change from ‘Bankruptcy Trustee’ to ‘Licensed Insolvency Trustee.’ One of the reasons being that many Canadians simply did not know that Bankruptcy Trustees offer more than just bankruptcy and consumer proposals. As a result, many people found themselves spending more money on ineffective debt solutions. Knowing where to turn could save you thousands of dollars.
Recent polls revealed fundamental misunderstandings around the role of a ‘Bankruptcy Trustee’:
- The majority of Canadians believe that Bankruptcy Trustees only deal with bankruptcy when, in reality, they are trained in all matters of debt insolvency.
- A large percentage of people did not know that only Bankruptcy Trustees (LITs) can administer consumer proposals. that
- As many as 6 in 10 Canadians reported thinking that credit counselling agencies and debt settlement companies are licensed to offer consumer proposals or bankruptcy.
- Many people reported avoiding even contacting Bankruptcy Trustees due to the negative connotations surrounding any connection with ‘bankruptcy.’
For these reasons, the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) lobbied the Office of the Superintendent of Bankruptcy for a name change. The new title of ‘Licensed Insolvency Trustee’ much better describes the role of a Bankruptcy Trustee. For the majority of people, the B-word (aka bankruptcy) carries a lot of negative weight to be avoided at all possible costs. No one wants to go bankrupt, and it is usually a last resort. A Licensed Insolvency Trustee (LIT) will explore all other options first. And yes, in some cases bankruptcy is the only option, and in those circumstances, it does give the opportunity to for a fresh start.
Breaking down the new name:
- Licensed – in other words, regulated by federal law and a governing body (OSB) that ensures the highest standard of practice of all licensed members.
- Insolvency – any unpaid debts are considered ‘insolvent’ – this could be a phone bill, credit card, student loan, line of credit, etc. The tile of ‘insolvency’ is much more inclusive than bankruptcy and more aptly describes the specialization of a Licensed Insolvency Trustee.
- Trustee – a legal category of trust – this person in accordance with and accountable to the laws of the Bankruptcy & Insolvency Act.
A Licensed Insolvency Trustee can provide expert advice on all your debt-related concerns, debt consolidation, consumer proposals, and debt resolution. Of those, bankruptcy is just one of the services they offer. First, your LIT will explore other options, such as a consumer proposal, which allows you to repay your debts for considerably less than you owe.
A consumer proposal is the only type of debt relief in Canada, which gives the opportunity to repay up to 70% less than the amount owed initially, interest-free with creditor protection. No two proposals are the same. A consumer proposal is based on your budget. You will never pay more than you can financially afford. You keep all assets, and you are legally protected from creditor action. You are given up to a 5-year window to repay your debts at the agreed-upon rate. We enroll every person in debt counselling so that they can learn the best tips and tricks for money management. A consumer proposal can ONLY be filed by a Licensed Insolvency Trustee.
Licensed Insolvency Trustee (LIT) Training & Credentials
It is notoriously difficult to become a Licensed Insolvency Trustee. A LIT will typically have a background in accounting and a university degree. They are required to complete a bankruptcy and three-year law course, complete written and oral exams, and be investigated by the RCMP. The written exam is very challenging, with a pass rate of less than 50%. For those candidates who do pass, ongoing education is mandatory. A trustee is an officer of the court, so the expectation for their character and expertise is set high. This ensures that every LIT will be able to offer the best and most fair debt resolution. Before a license is granted, the Superintendent of Bankruptcy must see that every candidate:
- Is known to have good character and reputation
- Has no personal insolvencies
- Has completed all required courses and passed both written and oral exams
- Has undergone an RCMP investigation to ensure a clean background
The rigorous training and examination of every Licensed Insolvency Trustee (LIT) provide that every LIT is an expert in debt insolvency will find the best solution for each individual.
What can a Licensed Insolvency Trustee (LIT) do for you?
If you need debt advice, talking to a Licensed Insolvency Trustee could save you time and a significant amount of money. While there are different types of debt management plans out there, if they are unlicensed, they will not be able to offer debt forgiveness or resolve your debt. Nor will they have the legal ability to give creditor protection. You are also likely to encounter administrative fees rolled into monthly payment plans that are not actually reducing your debt.
The good news is a Licensed Insolvency Trustee can offer several different types of debt relief, handle negotiations with your creditors, and find a solution that is right for you.
LITs in Canada are licensed to administer:
- Confidential consultations
- Consumer proposals (currently the #1 choice for debt relief amongst Canadians)
- Debt settlement
- Debt consolidation
- Credit counselling
Licensed Insolvency Trustees (LIT) have a legal responsibility to share all possible debt relief options with you, ensuring that you have all the facts so that you can make a fully informed decision about your next steps. Arguably, this is one of the most significant advantages of sitting down to talk with a licensed trustee.
For Your Information:
- What does a Licensed Insolvency Trustee (LIT) do?
Licensed Insolvency Trustees, formerly known as Bankruptcy Trustees, are federally licensed to advise you on insolvency as well as provide debt relief and resolution. A LIT has the expertise and resources to be able to review your finances and work with to resolve your debt.
- Why Talk To A Licensed Insolvency Trustee (LIT)?
- Licensed Insolvency Trustees (LITs) & Your Creditors
Upon filing a consumer proposal or bankruptcy, your Licensed Insolvency Trustee will handle any negotiations with creditors on your behalf. You also receive immediate protection from creditors, including collection calls and wage garnishment.
- Licensed Insolvency Trustees (LITs) Are Qualified Experts
It matters who you talk to when making important decisions about your financial future. You want to know that you are getting all the facts. The Office of the Superintendent of Bankruptcy (OSB) ensures that every LIT is an expert in their field.
- Licensed Insolvency Trustees (LITs) Report To the OSB
Licensed Insolvency Trustees must adhere to the Code of Ethics for Trustees. The Office of the Superintendent of Bankruptcy (OSB) oversees the body of LITs, ensuring they receive ongoing training and always offer the highest standard of care. If for any reason a person has an issue they are unable to resolve with a LIT, they can file a complaint with the OSB.
- All Fees Are Regulated
At Hudson & Company, your initial consultation with a Licensed Insolvency Trustee is always free. You are under no obligation. Any subsequent fees are clearly stated. They are also regulated by the OSB and the federal government. This practice ensures that there are no surprises and you know exactly what fees to anticipate if any.
Want to book an appointment with a Licensed Insolvency Trustee (LIT)?
Many of our clients are surprised to find that what seemed like an overwhelming financial situation was quite easily resolved with the help of a LIT. In some cases, all that is needed is an expert’s guidance. It might be that you just need a professional to help you with the management of your finances. At other times, debt resolution is more complicated and requires a longer-term plan. You can book a free consultation with a Licensed Insolvency Trustee at any time to get your debt-related questions answered. In either case, you have the peace of mind knowing that you are not wasting valuable time or money. You are not obligated to anything. Call 1-403-265-4357 if you have questions or want to schedule an appointment.