If you are losing sleep over your debt and don’t know where to turn, your first call should be to a Licensed Insolvency Trustee (LIT). An LIT is the only professional in Canada authorized to administer the entire range of debt management options, from credit counselling to Consumer Proposals and Bankruptcies.
An LIT has the knowledge and credentials to help you determine which debt management strategy is right for you. While your debt problems can make you feel helpless and alone, an LIT will walk you through every step of your debt journey. If you are struggling with debt, reach out to a Licensed Insolvency Trustee in Victoria today.
What is a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee is a federally regulated professional qualified to provide debt advice across the entire spectrum of debt management options. When you partner with an LIT, you can feel confident with your decision. All Trustees are licensed and regulated by the Office of the Superintendent of Bankruptcy (OSB). If you encounter an issue with an LIT, you can file a complaint with the OSB and they will thoroughly review it.
Unlike financial advisors, accountants, or other financial professionals, an LIT’s fees are federally regulated. This means you don’t have to worry about paying excessive amounts of money to get help when you are already struggling to make ends meet.
What Debt Services Can a Licensed Insolvency Trustee Provide in Victoria?
A Licensed Insolvency Trustee is a debt expert. No matter how deep in debt you are, they can help you figure out a plan. LIT’s have the knowledge and expertise to determine the right debt solution for your problem. Some of the debt service tools in the LIT toolbelt include:
Credit counselling is meant for people who are still managing to pay their bills but need help creating a budget or financial plan to get out of debt. You can find credit counsellors through not-for-profit and for-profit companies. It’s important you research the credit counselling company before agreeing to work with them or paying any upfront fees. Some companies make claims that they can not fulfill. If a company promises to quickly fix your debt or immediately improve your credit score, consider this a red flag.
Some for-profit companies charge high fees even if they don’t help solve your debt problem. Since there is no legal requirement for a credit counsellor to have specialized training, you should ask about qualifications prior to working with a company. On the other hand, you can feel confident that a Licensed Insolvency Trustee has the specialized training and experience necessary to support you.
A Consumer Proposal is a legal process that can only be administered by a Licensed Insolvency Trustee. In this process, you work with your LIT to develop a proposal to pay your creditors a certain portion of your overall debt. You can also negotiate an extension of the time you have to pay your debt or a combination of debt reduction and more time. You have a total of five years to complete the proposal.
If your proposal is accepted and you meet all of the conditions of your agreement, you’re likely to be legally released from the debts included in your proposal. A Consumer Proposal allows you to keep more of your assets and has less of an impact on your credit score than filing for Bankruptcy.
Similar to a proposal, an LIT is the only professional that can administer a Bankruptcy. While Bankruptcy is usually the last financial resort, it is an effective way to get a fresh financial start. In Bankruptcy, you are discharged from most of your unsecured debts, including credit card debt and payday loans. Your Bankruptcy Trustee will help you through the entire process and will deal directly with your creditors on your behalf.
When you file for Bankruptcy, you can stop making payments to your unsecured creditors and any wage garnishment or lawsuits against you by your creditors will stop. Your Trustee will take on the responsibility of selling your assets and will hold the money raised in a trust until it is distributed to your creditors.
What Are The Benefits of Working With a Bankruptcy Trustee in Victoria BC?
There are several benefits you can rely on when you choose to work with a Licensed Insolvency Trustee in Victoria, including:
- Support. You can speak with an LIT about your specific debt problems and they can help you come up with a solution. You don’t have to deal with your debt alone.
- Options. An LIT is the only debt professional in Canada who can offer insolvency solutions like Consumer Proposals and Bankruptcies. LITs also offer other debt management options such as credit counselling.
- Qualified. LIT’s have the education, qualifications, and experience to assist you with your debt.
- Regulated. You don’t have to worry about an LIT charging excessive fees. The Office of Superintendent of Bankruptcy of Canada regulates everything an LIT does. They are bound to a specific Code of Ethics which outlines everything from how a Trustee communicates with creditors to standards on how they can advertise.
Get Help With Your Debt in Victoria Today
If you are looking for local debt help, reach out to a professional Licensed Insolvency Trustee at Allan Marshall & Associates. We have Trustees in Vancouver Island who can work with you to understand your debt needs and set you on a path to a fresh financial start. You don’t have to deal with your debt alone. Book your free consultation with one of our LIT’s by calling 1 (888) 371-8900 or by connecting online.