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Why You Should Talk to a Licensed Insolvency Trustee About Your Debts

Are you sick of worrying about your debt? Have you been late paying a utility bill because you didn’t have the money? Do you routinely make minimum payments on a credit card bill that never seems to get any smaller?

Living in debt can be extremely precarious. It can feel like you’re one major car repair away from it all unravelling. People who are deep in debt also often live paycheck to paycheck, a situation that’s precarious at the best of times, and it can feel like you’ve been set up to fail.

If you find you’re having a hard time keeping up with debts, you need to explore your options for debt relief. Start by booking a free consultation with a Licensed Insolvency Trustee to evaluate your finances and debts and find a solution.

What Is a Licensed Insolvency Trustee?

A Licensed Insolvency Trustee is a federally regulated professional who provides advice and services to people and businesses experiencing debt problems. It’s their responsibility to help you make an informed decision about your finances.

They are the only professionals who can help you with insolvency proceedings, including consumer proposals and bankruptcies. There are other professionals who provide other debt services, such as debt management or debt consolidation, but only a LIT can help with federally regulated insolvency proceedings.

When Should You Talk to a Licensed Insolvency Trustee?

The sooner you talk to a Licensed Insolvency Trustee, the better. Acting quickly may mean that you have more options available to you. You should speak with a LIT when your debts feel overwhelming, and you’re not sure what to do.

The longer you wait and the deeper in debt you go, the more limited your options may become. Most Licensed Insolvency Trustees do not charge for a first consultation. This gives you an opportunity to get an expert opinion on the state of your finances and what you should do next.

How Can You Get Debt Relief?

Part of a Licensed Insolvency Trustee’s job is to tell you about all of the options available. This will include options like debt management plans, debt consolidation loans, and debt settlement that other professionals can provide.

However, there are some services that only a LIT can help you with. These include filing for bankruptcy or a consumer proposal.

What differentiates these forms of debt relief from others is their legal status. Attempting to negotiate a reduced payment or interest rate from your creditors as part of a debt management plan is entirely voluntary on the part of the creditor.

If you file for bankruptcy, creditors are entitled to recoup as much of their costs as they can by collecting on your assets or even some of your income, but they cannot refuse to follow the bankruptcy proceedings.

When it comes to a consumer proposal, you propose a repayment plan that involves monthly payments without interest to pay back a part of what you owe. You will do this with the help of the LIT. Your creditors have an opportunity to vote on whether to accept the proposal, but if creditors representing the majority of your debts do accept these terms, then they’re binding for all of your creditors.

A Licensed Insolvency Trustee can explain all of this in more detail. They can help you with your debt problems and offer services that other professionals can’t.

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