When Should You Consider Using the Services of a Licensed Insolvency Trustee?

Services of a Licensed Insolvency Trustee: Unsure if you should declare bankruptcy? Here are some telltale signs that it might be time to speak with a Licensed Insolvency Trustee.

People in many countries are struggling financially these days. Canadians are no exception with millions of people living from paycheque to paycheque. The COVID-19 pandemic and the rising expenses from groceries to gas make Canadian consumers worry about their financial stability. 

Many people fall behind with their bill payments and debt obligations, while some of them have temporarily lost their employment. Fortunately, there is a suitable solution. Keep on reading to learn when you should consider using the services of a licensed insolvency trustee.

Financial Struggles Today

When most of us try to make ends meet and don’t have solid savings account to rely on, we all need a suitable solution on how to avoid debt. The utility bills and medical expenses can easily grow and pile up while you feel even more stressed and anxious not knowing what to do. 

When you urgently need additional funds for the short them, payday loans Winnipeg can offer quick assistance till the next salary day. If you have been laid off and can’t count on your emergency fund for a long time, you may feel despair. Luckily, there are specialists who can help you.

These professionals were trained to cope with financial issues. Are you worried that you can’t afford to pay down existing bills? Did you fail to repay the loan or credit cards on time? Whether it’s due to unemployment, illness, poor budgeting, or overspending, we are not here to judge you. If you have a feeling you can’t handle all of it any longer, it’s time to contact a licensed insolvency trustee.

What Is a Licensed Insolvency Trustee?

Once you understand you experience money-related trouble, you may try various options to get out of this situation. There are several paths to help you resolve temporary financial issues. Some consumers take out a personal loan or a debt consolidation loan. Others ask their relatives and friends to lend them some cash. 

If you need qualified assistance regarding your personal finances and debts, a licensed insolvency trustee is who you need. This person is certified to give legal advice on how to choose the best solution.

A licensed insolvency trustee is a federally regulated specialist who offers services and professional advice to people and business owners with debt issues. These professionals help consumers make smart choices to cope with their financial struggles as they undergo in-depth and thorough training and are well-qualified to provide this type of help. 

All of the activities performed by the licensed insolvency trustees are regulated by the Canadian government which gives consumers the peace of mind that they will get unbiased and fair assistance.

Reasons to Consult a LIT

Are you worried about getting a consumer proposal or bankruptcy? The licensed insolvency trustees are the only specialists who are authorized to administer insolvency proceedings and help you get discharged from different types of debt. People who experience financial hardships will benefit from this option the most. Here is why a LIT may assist you in your attempt to get rid of debt:

An LIT is well-qualified

Everyone wants to get finance-related advice and assistance from a qualified specialist. So, you will most likely want to deal with a person who has vast experience and enough expertise to help you make the right decision. A qualified LIT is confident enough to provide a high level of services as they obtain a special license from the Office of the Superintendent of Bankruptcy (OSB).

A LIT may cooperate with creditors directly

Are you scared of dealing directly with your lenders? A licensed insolvency trustee may do the task on your behalf once a personal bankruptcy or a consumer proposal is filed. More than that, unsecured lenders won’t be able to initiate or continue any legal proceeding or collection action against you.

The fees are federally regulated

Don’t worry about the commission a LIT obtained. The fees are regulated by the Canadian government, while the first consultation is generally free of charge.

Government-regulated LITs

Apart from the finance charges, the work of a LIT is typically federally regulated as well. A licensed insolvency trustee is to accept the federal standards of this practice and be subject to oversight by the OSB. They should follow the Code of Ethics for Trustees, so if you aren’t satisfied with their services, you can file a complaint with the OSB.

A LIT is easy to find

The main office coordinates of all the licensed insolvency trustees across Canada can be found in the Licensed Insolvency Trustee registry online. They are available in every province.

What to Consider When Reaching Out to a LIT

1. Actions of the Lenders

Are the lenders calling you continuously? Do the collection agencies threaten you? Has the Canada Revenue Agency garnished your wages? The CRA has the right to do it for outstanding income taxes. If you are feeling overwhelmed with the amount of debt you can’t cope with or the CRA has registered a lien on your property, it may be a wise decision to turn to a LIT.

2. Make a Monthly Budget 

Many people don’t have anything left after they get their paycheque and pay all the necessary costs and bills. If you also don’t have enough to cover your debt payments, you may need to update your monthly budget. If you create a budget and list all the costs you have, you may find the categories in which you overspend. 

Don’t rush into the decision to file bankruptcy. Even if the budget doesn’t help you find some funds to get rid of debt, you may use a budget planner from the Government of Canada to help you with that. Otherwise, a LIT will assist you in this process and help to choose the best option.

In Conclusion

Even when you have a mountain of debt, you still have several options to select from. One of the easiest solutions would be to consult a licensed insolvency trustee. This certified specialist will help you see the whole picture of what is going on with your personal finances as well as the possible consequences of your decisions. It can be frustrating to think about bankruptcy, so try to speak with a LIT first and make a reasonable choice.