Debt Help That Only LIT’s Can Help You WithNov 21, 2018
In our blogs, we often write about do-it-yourself debt help tips and techniques to get you back on track when it comes to reducing your personal debt, but when it comes to how a Licensed Insolvency Trustee can help you, do you know which two debt relief options they can really help you with?
As it’s Financial Literacy Month in Canada, and the focus of that month is to help Canadians improve their financial and debt related knowledge, we wanted to educate you on the role of a Licensed Insolvency Trustee and how they can help you deal with your debt.
What is a Licensed Insolvency Trustee?
Formerly known as Bankruptcy Trustees, these debt professionals are now officially referred to as Licensed Insolvency Trustees, or LITs. An LIT is a professional licensed by the Government of Canada that provides services to people who may be having difficulties with their personal debt.
Do I have to pay to meet with an LIT?
If you decide to meet with an LIT about dealing with your personal debt, the initial consultation is always free! And there’s no obligation to move ahead with any recommendations they may provide you during the consultation.
As LIT’s are regulated by the Government, their fees are also regulated for their service and they will be clearly explained to you, regardless of which LIT you decide to use.
If you want to find an LIT in your area, we recommend using the Licensed Insolvency Trustee Registry.
What happens in the initial consultation?
The initial consultation is an opportunity for you and the LIT to look at your current debt situation and the problems you might be facing. With that knowledge, the LIT will explain all the options available to you, answer any questions, and help you decide on a debt solution that’s right for your situation.
All of this is confidential and as we mentioned earlier there is absolutely no obligation. This makes it a great opportunity to get professional debt advice; whether you want to explore options to help you reduce debt or need to help dealing with overwhelming debt.
How can an LIY help me deal with debt?
LITs are the only professionals in Canada that can do consumer proposals and bankruptcies. These options last resort options, when other forms of debt relief are not enough. If it is recommended that you use one of these options, you will have to work with an LIT. In these cases, your LIT will negotiate and deal with your creditors in order to reduce or eliminate your debt.
Should a different option be more beneficial such as exploring a debt consolidation loan, the LIT can refer you to other qualified debt and financial professionals who can help.
If you have more questions or are still unsure how to deal with your debt, take advantage of a free, no obligation consultation with an LIT.