Why Hire a Licensed Insolvency Trustee in Winnipeg

Having dealt with financial problems and financial solutions for almost 40 years I can take certain things for granted. However, most people who find themselves in financial difficulties are doing so for the first time. They know nothing about the options that may be available to them to solve their problems. So if you are in this situation how do you get good advice? How do you know who to talk to for advice you can trust?

What to Look For

With the proliferation of television, internet, radio and print media advertising, offering all sorts of catchy phrases that basically boil down to “solving your financial problems” there is one good rule of thumb. Look at:

• the qualifications of the person or agency that you are considering
• What level of training and experience they have
• Who monitors or audits their business

When it comes to solutions to debt problems, there are two main options people will consider. Both claim to have the ability to solve your problems.

Credit Counselors

Training: In Manitoba, pretty much anyone can put out their shingle and claim to be a “credit counselor”. Some of them actually have some level of training in basic budgeting and sales, but almost none have a degree in accounting or debt management. If they had that, they would be operating as an accountant or Licensed Insolvency Trustee.

Monitoring: Aside from some provincial legislation that sets standards for interest charged, there is no official monitoring done of credit counselling agencies. If they are operating as a non-profit, they must meet basic federal guidelines for a non-profit agency, but there is no on-going monitoring of their business operation or how client files are handled. There are no national standards for fees charged or procedures dealing with client files.

Audits: Many credit counseling agencies are part of a larger national company. As such their books and records will likely be audited annually. Their client practices are not audited. For example, many credit counseling agencies will claim that they can do Consumer Proposals or Bankruptcy. This is entirely false, since ONLY Licensed Insolvency Trustees, with their far greater level of training, are licensed to offer either of those solutions. If credit counseling practices were audited, such false claims would not exist.

Licensed Insolvency Trustees

The title “Licensed Insolvency Trustee” gives you a guaranteed level of expertise that can lead you in the right direction to solving your unique financial problems. Also, because Trustees work under the Bankruptcy and Insolvency Act of Canada, you can be assured of a basic level of competence.

Licencing: Trustees are licensed by the Federal Government, after completing the rigorous years of study and examinations required. As previously noted, only Licensed Insolvency Trustees are licensed to administer Consumer Proposals and Bankruptcies

Training: To achieve the designation of Licensed Insolvency Trustee, an individual must undertake several years of study, examinations and experience. As well, there are requirements for minimum levels of education prior to even being admitted into the program to begin their studies.

Monitoring: Licensed Insolvency Trustees work under the Federal Government in the administration of the Bankruptcy and Insolvency Act of Canada. Trustees are required to work within the Act, which stipulates all procedures and rules governing Proposals and Bankruptcies. Adherence to those standards are monitored at every stage of the administration of an estate. All fees charged are set and monitored by the federal government.

Auditing: Trustees are continually audited by the Superintendent of Bankruptcy. Those audits include all procedures, fees, and trust accounts and take place monthly and annually.

So, who should you look for to receive help and advice you can trust? A Licensed Insolvency Trustee. A LIT will sit down with you and review the details of your financial situation. We can assist you in finding the right solution for your individual situation. That might be a Consumer Proposal or Bankruptcy, or we may be able to identify other non-legislative solutions that you might like to try first. Either way, you will be able make a fully informed decision that is in your own best interest, and you will know that you are working with professionals who are qualified, experienced, and regulated.

Leigh C. Taylor, LIT

Leigh has been working in the insolvency field since 1975. He is a graduate of the University of Manitoba. Leigh began his career as an Official Receiver with the Office of the Superintendent of Bankruptcy. He is a Certified Professional Accountant, and he attained his license as a Licensed Insolven Read More Leigh has been working in the insolvency field since 1975. He is a graduate of the University of Manitoba. Leigh began his career as an Official Receiver with the Office of the Superintendent of Bankruptcy. He is a Certified Professional Accountant, and he attained his license as a Licensed Insolvency Trustee in 1980.Leigh has been a member of the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) since its inception. He is a Past President of several organizations, including the Manitoba Association of Insolvency and Restructuring Professionals (MAIRP), the Armstrong Point’s Association, and the Manitoba Opera. In addition, he has served for numerous years in leadership roles in Winnipeg churches. Close