unlicensed debt advisors

Warning – Not All Debt Advisors are Equal

  • By Jillian Taylor-Mancusi, LIT

The wrong advice can cost you more than money.

Being in debt can be stressful and there are a lot of options out there when looking for help. Being an informed consumer helps you to avoid the wrong advice. But how do you make the best choice and avoid losing more of your hard-earned money?

Looking for the BEST Debt Help?

When it comes to getting help with your debt, did you know…

Licensed Insolvency Trustees (LIT) are:

    • the only companies in the debt-help field that are legislated and regulated by the Government of Canada
    • the only professionals who have gone to school to study and become experts on debt relief and the Bankruptcy and Insolvency Act
    • have studied to become experts on financial counselling

LCTaylor is a Licensed Insolvency Trustee

Companies claiming to be able to help with your debt, who are not LITs, are just that: ‘claiming’ to be able to help. Not all of these debt-help companies are created equally.

There are warning signs that these companies may not be looking out for your best interest if:

    • you are asked to provide any money up front, that should be your first warning sign that this is not an LIT.
    • the only option you are provided with is a costly debt repayment plan (disguised as a Consumer Proposal – which only an LIT can file)
    • you are told you have to pay an amount of money before you can be referred to an LIT. You can call an LIT for a free consultation any time. You do not need to be referred by another agency or person.

Not for Profit Agencies

Another phrase that sometimes can be misleading is that the company is “not for profit.”  To most, you would think this means that they are a charity, only in business to help the honest, but unfortunate debtor get out of debt; this is not always the case!

This phrase often only means that they don’t have a profit to show once all of the expenses are paid, which include their wages and perhaps bonuses for ‘helping’ so many poor Canadians (even if they may not be based in Canada themselves!)

Things that Only a Licensed Insolvency Trustee Can Do

LIT vs. Debt AdvisorBy dealing with an LIT you can be assured that you are dealing with a professional who knows all of the rules and regulations around debt help. You can also be assured that all of your dischargeable debts will be included in your ‘get out of debt plan.’

When you deal with other non-LIT companies, who claim to help with debt, you will find that not all of your creditors are bound by the plan. Those creditors who disagree, can still continue to collect from you. With a Consumer Proposal or Bankruptcy, all of the unsecured creditors are bound by the agreement.

These other non-LIT organizations cannot help if your wages are being garnished, nor can they stop any Statements of Claim filed against you; only a Licensed Insolvency Trustee can truly help stop those actions against you. That is because when you file with a Licensed Insolvency Trustee, only the LIT can issue a legal Stay of Proceedings.  That means that no one can sue you, garnish your wages or take any other collection practices against you. Other non-LIT companies, claiming to help you, don’t have that tool in their toolbox!

Seeking out a financial professional can be stressful. With so many choices out there, how can you be sure you are in the right hands? This podcast will answer that question and more.

Who does a Licensed Insolvency Trustee work for?

The answer to that question depends on where in the process you are. What many people don’t understand is that a Trustee wears different hats throughout the insolvency process. When you meet with a Licensed Insolvency Trustee for a consultation, they are gathering all of the specifics of your situation, so that the LIT can provide YOU with the BEST solution for YOU.

An LIT will give you all the information to allow you to make a decision that is in your best interests, not in the Trustee’s or the creditors. An LIT wants you to pick the best solution for you; they are not trying to take advantage of you. At that point, they are working for you.

After you file a Consumer Proposal or a Bankruptcy, however, the Trustee works for the unsecured creditors in ensuring that they receive their fair share of any proceeds from the insolvency.

Not all Debt is Bad

No one wants to be in debt, but debt is not a bad word. Some debt can be necessary. For example, if you would like to purchase a car or a house, you will likely need a loan or a mortgage to make that happen. In this case, debt is good. A better word to think about is “debt help”, and that is what a Licensed Insolvency Trustee can provide.

At LCTaylor, we are not embarrassed by the word debt, like some secret that can only be spoken of in whispers. Instead, we believe in finding solutions to the issue. If you can’t discuss the elephant in the room how can you fix it?

Why LCTaylor?

As an LIT at LCTaylor, I can tell you that we will give you all of the options that are in your best interest, so that you can make an informed decision.  We will not provide only one option, unlike some other companies that are only equipped to provide one service.  Our toolbox is full of tools to help you get out of debt.

We will not suggest only the options that are easier for us to administer, or that will make us more money in fees. Here at LCTaylor we have been in business, helping fellow Manitobans get out of debt for over 30 years. You only get that kind of history by being honest, straight forward and truly wanting to provide the best solutions – solutions that work!

Jillian Taylor-Mancusi, LIT

Jillian has worked in the insolvency field since 1992. She is a graduate of the University of Manitoba. She received her Insolvency Counselor’s Qualification Certificate from Ryerson Polytechnic University in 1998, and in 2007 she attained her license as a Licensed Insolvency Trustee. Jillian is a Read More Jillian has worked in the insolvency field since 1992. She is a graduate of the University of Manitoba. She received her Insolvency Counselor’s Qualification Certificate from Ryerson Polytechnic University in 1998, and in 2007 she attained her license as a Licensed Insolvency Trustee. Jillian is a member of the Canadian Association of Insolvency and Restructuring Professionals (CAIRP). She is Past President of the Manitoba Association of Insolvency and Restructuring Professionals (MAIRP). Jillian has held positions on the Armstrong Point Association, Executive of her local EDA Riding Association, Manitoba Highland Dance Association, and the Continuing Education Committee of CAIRP. Previously, Jillian was the Treasurer for the Parent Association at her daughter’s school. Currently, Jillian serves as the Chair for Dressage Winnipeg. Close


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