Life can be unpredictable. Unexpected developments and sudden expenses can be difficult to manage financially if budgets are being stretched. Many residents of Calgary – in fact, Canadians across the country – have found inflation and rising prices a struggle in recent months. Job losses were widespread during the Covid-19 pandemic making it easy for expenses to run out of control and debt to mount up.
If you live in Calgary and are struggling with unexpected financial issues, a Licensed Insolvency Trustee (LIT) should be your first call. Formerly known as a Bankruptcy Trustee, LITs are federally regulated and highly trained financial professionals who offer a number of valuable services to people just like you, including:
- Credit counselling
- Financial advice
- Filing Bankruptcy and Consumer Proposals
- Assistance dealing with creditors
The fees charged by LITs are regulated by the Federal government and your initial consultation is free.
What is a Licensed Insolvency Trustee (LIT)?
LITs are the only federally regulated debt advisors in Canada, who are licensed by the Office of the Superintendent of Bankruptcy. They can offer support and unbiased advice to help you decide on the best way to manage your debt. They can also deal with your creditors on your behalf.
What services do Licensed Insolvency Trustees offer?
A Licensed Insolvency Trustee in Calgary can guide you out of debt with a range of services, including:
Credit counselling
Credit counselling can help you get your finances back on track. Your counselling session will involve:
- A review of your financial situation
- Practical advice to improve your money management and budgeting
- Drawing up a debt repayment strategy
- Discussing the pros and cons of a Consumer Proposals and Bankruptcy
Financial advice
A key part of returning to a healthy financial status is actively managing your money and spending in a sensible way. An LIT can advise on everyday spending and money management. They can also help you create a manageable budget.
Consumer Proposal
Consumer Proposals, are an alternative to Bankruptcy for those who are still solvent. Your LIT will make a proposal to your creditors, offering to pay a specified amount for a defined period of time, the maximum allowed time being five years. Your creditors can choose to accept or reject a Consumer Proposal.
If your creditors do accept your proposal, your payments will be collected and distributed by your LIT. Creditors often see this as a good way to salvage at least some of the funds owed , as they may not receive as much if you file for Bankruptcy.
Bankruptcy
Under Canadian law, LITs are the only financial professionals allowed to administer Bankruptcies and Consumer Proposals.
Bankruptcy is a formal legal declaration that you are unable to pay your debts. When you have declared Bankruptcy you will retain that status for a period of time before eventually being “discharged” and becoming solvent once more.
Filing Bankruptcy is not something that should be taken lightly, ut if your debt feels impossible to manage, Bankruptcy may be your best solution. An LIT will explain all your options to you to find a solution that best suits you and your unique financial situation.
How much does a Licensed Insolvency Trustee cost?
LITs are not allowed to set their own fees and rates, instead their cost is calculated and drawn from the funds that have been paid into each Bankruptcy or Consumer Proposal, not from you personally. Your initial consultation with an LIT is completely free, in compliance with the Office of the Superintendent of Bankruptcy.
If you choose to file for Bankruptcy, the cost will vary depending on whether this is the first time you are filing, or the second. The cost of filing for Bankruptcy will be broken down into manageable monthly payments.
Ready to say goodbye to your debt?
If you are a resident of Calgary and are finding it increasingly hard to cope with your financial commitments, look no further than Allan Marshall and Associates. We are a national firm of Licensed Insolvency Trustees, with offices in the city. We have a team of financial experts ready to help you explore the options that will start you on the path to a brighter tomorrow.
Why not get in touch today and arrange a free consultation? With the right support, you can begin your journey to becoming debt free.
