What Is A Licensed Insolvency Trustee?
A licensed insolvency trustee or LIT is a professional working under federal regulations. Their job is to serve businesses or individuals who are mired in debt. Their knowledge allows them to provide useful advice that can help these debtors deal with the problems in the best way possible.
Why should you consider hiring a LIT?
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Learn about all your options to take control over your debts
There are several ways to go about insolvency from bankruptcies to consumer proposals. These are government regulated processes that can lead to a discharge from debts upon successful completion. Persons who are experiencing severe financial challenges may realize that these are excellent solutions to their problems.
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Let the LIT face the creditors and hammer deals with them
Dealing with creditors is one of the most stressful parts of insolvency. Companies are asking you to pay them but you don’t have the means to do so. If you file for a bankruptcy, then the LIT will take over the reigns. They will deal with the creditors so you won’t have to. Unsecured creditors will no longer be able to take legal action against you.
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Enjoy the services of a qualified professional
A lot of different people may offer help to those in this kind of situation. Not everyone has your best interest at heart. Not everyone has the knowledge and skills to manoeuvre out of this tricky financial position. Meanwhile, LITs have the training and experience necessary to get the job done. These are qualified professionals who have already helped countless others.
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Be confident knowing that LITs are federally regulated
LITs are held to a high standard in terms of competency and ethics. The government monitors their actions through oversight reviews to ensure that they always stick to their profession’s standards of practice.
Clients who are unable to resolve issues with their LIT can file a complaint with the Office of the Superintendent of Bankruptcy.
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Even the fees are regulated on the federal level
There should be no worries about the cost of their services as the government also regulated their fees. Initial consultations are often provided for free.
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When you need one, LITs are simple to locate
The Licensed Insolvency Trustee registry holds a comprehensive list of practicing LITs and their offices throughout Canada. They can also be found through a relevant query on any search engine.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
1 | Personal loan | $8,000 |
2 | Credit card 1 | $6,812 |
3 | Tax Debts | $5,399 |
4 | Overpayments | $5,200 |
5 | Overdraft | $700 |
Total Owed | $30,204 |
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
60%
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.