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Question: Licensed Insolvency Trustee. That’s the new title replacing “Bankruptcy Trustee”. Why the change? First off, bankruptcy is a dirty word. People are afraid of what they think it means. The “Bankruptcy Trustee” title led to people making assumptions they shouldn’t make about what Trustees do and how they do it. Unless you have been in to see a Licensed Insolvency Trustee in the past, you likely don’t know that they offer much more than bankruptcy-related services. What is a Licensed Insolvency Trustee and what services do they offer?
Answer: There are approximately 1,000 Licensed Insolvency Trustees (“LIT”) practicing across Canada. When financial difficulties become so overwhelming you can’t see a way out, your first step should be to contact a reputable LIT that you can trust and services your area. An LIT is a licensed, trained professional whose primary goal is to help people deal with financial problems and make a fresh start. An LIT will crunch the numbers and provide guidance and support.
The most common scenario is as follows: someone calls and provides some details about their finances that they don’t know how to deal with. Some have a manageable amount of debt but are perhaps suffering from temporary health issues, a change of employment or marital woes. Others have stable and relatively good incomes but have accumulated too much debt and can no longer carry the load. Fortunately, many facing these unfortunate situations have the confidence to call an LIT to ask for help.
Once we are able to answer a few questions over the phone and that coming in to discuss possible solutions is worthwhile, most book an appointment to see an LIT in person. During the meeting, the LIT is able to consider the financial information and understand the circumstances which lead to the financial difficulties. You speak, we listen. The LIT is then able to assess the situation with all of the information and suggest a course of action.
Possible solutions include refinancing, family loans, increasing income, reducing expenses, deferring savings, consolidating debt and a consumer proposal. Should none of these options make sense, the LIT is also able to walk through the bankruptcy process as a last resort. For those that have opted for the bankruptcy solution, they have turned the page, rebuilt their lives and credit and feel much better about themselves. Life does go on.
The name change to LIT has a singular goal: people who need help managing their excessive debt will turn to an LIT for sound advice and not assume that bankruptcy is the only solution. There are many debt management companies and counselors out there – unless they are an LIT, they do not play by the same rules and cannot offer the services and protection an LIT can offer.
If you need help with your plan or are burdened with debt stress, asking for sound advice is a sign of strength and the smart thing to do. Asking sooner rather than later is always better. Call Doyle Salewski today for your free, no obligation consultation. You’ll be glad you did.