WHY YOU CAN TRUST A LICENSED INSOLVENCY TRUSTEE

Could a licensed insolvency trustee be the person you need to help guide you out of your current financial difficulties? You may be considering this option, but we understand you may also have questions about whether this is the right path forward.

We’ll give you specific reasons you can trust a LIT in this post. But in short: yes, you can trust them to help you work toward a brighter financial future and to help you get out of debt.

Commonly referred to as a LIT, a licensed insolvency trustee should be your first choice when seeking help to get out of debt. The role of these federally licensed experts is to provide financial advice and to administer bankruptcies and consumer proposals. They also have a legal obligation to protect a debtor’s rights throughout the process.

Why You Can Trust a Licensed Insolvency Trustee

Here’s more about why you can trust LITs to help you.

They Work for You

Banks, collection agencies, or other creditors do not employ LITs. Their job isn’t to ensure that your creditors get their money back. It’s to help you get out of debt in a way that respects the rights of everyone involved, especially yours. Also, the Office of the Superintendent of Bankruptcy (OSB) strictly regulates their fees, which means they’ll almost always be more affordable than unlicensed debt consultants.

The Profession is Closely Regulated

The OSB requires that LITs are of good character and reputation. In practice, they must be in good standing with the relevant professional associations and regulatory agencies. It also means they’re not involved in disciplinary matters. Additionally, they must be solvent and free of any conflicts of interest to perform their duties objectively.

They’re Highly Trained

Most LITs have a background in accounting and a university degree. But did you know they must also complete an exhaustive three-year course in bankruptcy and law? Also, they must meet mandatory professional development requirements and obtain their license, which requires demonstrating their trustworthiness.

Sometimes, Only a Licensed Insolvency Trustee Can Help

When filing for bankruptcy, the law requires that you work with a LIT. They help you navigate a complex process while protecting your rights. They can also provide objective debt counselling and submit a consumer proposal on your behalf (an arrangement granting you immediate protection from creditors in exchange for partial payment of what you owe).

(Curious to learn more about consumer proposals? Please take a look at this post next, where we explain the process in detail)

You’ll need to get the best advice possible if you’re in an awkward position. Remember that creditors partially fund even non-profit debt counselling agencies. It’s incentivizing unlicensed debt consultants to dissuade you from filing for bankruptcy, even if it’s the best option. In contrast, you can trust a LIT to provide unbiased advice.

(Is credit counselling on your mind? Here are six big signs it might be time for you to consider this option)

Get the Financial Assistance You Need

To find out whether you need to submit a consumer proposal or file for bankruptcy, seek the services of a licensed insolvency trustee from Fox-Miles & Associates Inc. We provide services in Edmonton, Sherwood Park, and surrounding areas.

Did you learn a lot about working with a licensed insolvency trustee in this post?

Here are three more posts you might like to read next:

This post was first published in 2020, but it was updated in 2021 just for you.