In today’s complicated financial world, it is reassuring to know that there are well educated and reputable professionals to help you solve your money problems. A Licensed Insolvency Trustee is one of these professionals, but who are they and what do they do? How do you know your trustee is trustworthy?
What is a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee (LIT) is a specially trained financial professional whose job is to assist individuals and families who are going through financial problems. These professionals have completed several years of extensive education and training in the insolvency field in order to become an LIT.
An LIT provides many services, all under the supervision of the Office of the Superintendent of Bankruptcy Canada (OSB) — the government agency responsible for administering Canada’s Bankruptcy and Insolvency Act. The OSB ensures that insolvency laws are properly upheld and that both lenders and the public are treated fairly. The OSB licenses LITs and provides specific guidelines for them to follow.
How does an individual become a Licensed Insolvency Trustee?
Many trustees come from an accounting background, but to obtain licensing from the OSB, would-be trustees need to undergo an additional rigorous training program and sit for licensing exams.
All trustees undergo a very specific training program, which helps them prepare for the necessary exams. This training is called the Chartered Insolvency and Restructuring Professional Qualification Program. The coursework covers the Bankruptcy and Insolvency Act (BIA), administering the BIA, personal and corporate insolvency, interviewing, counselling, and money management.
Throughout the training, trustees are required to pass exams. At the end of the training, following a final written exam, they are required to pass an oral exam in front of a Board of Examiners working on behalf of the OSB. Once they are licensed, trustees need to continue to uphold the rules of the BIA and the Office of the Superintendent of Bankruptcy in order to retain their license. Trustees are audited regularly by the OSB to ensure that they are doing so.
What does a Licensed Insolvency Trustee do?
An LIT assists people who have unmanageable debt, helping them to find a solution that works for their specific needs. The LIT will meet with the debtor — this first consultation is typically free of charge — and review the situation in detail. Once they have all of the information needed to offer advice, they will explain all of the options — both non-legislative, like a consolidation loan, better budgeting and money management, and legislative, like a Consumer Proposal or Bankruptcy.
If the debtor decides that a Consumer Proposal or Bankruptcy is in their best interests, the LIT will have documents prepared, signed, and filed. Once they are filed, the debtor has the full protection provided by these options. All collection practices, including garnishment of wages, are stopped. Once the documents are filed, the LIT will administer the Proposal or Bankruptcy. This includes dealing with the creditors and providing required financial counselling sessions.
It is important to note that only a Licensed Insolvency Trustee can administer a Consumer Proposal or Bankruptcy in Canada. This is good to know because some credit counselling companies will indicate that they can offer these, when in truth they cannot. What they can offer, and at a cost, is a referral to a Licensed Insolvency Trustee. Why bother with the middleman when you can go directly to the LIT of your choice?
With a Licensed Insolvency Trustee, you’ll get the best advice available.
Financial difficulty is stressful enough. Finding a reputable professional to help with those financial problems shouldn’t add to that stress. When you work with a Licensed Insolvency Trustee, you know that you are working with a knowledgeable and reputable professional that will ensure the best available solutions to your unique situation are provided and explained. Your LIT is a trustworthy debt solutions specialist that can help you end your financial difficulty and get a fresh start.
So, if you have reached the end of your rope with your search for debt help, it may be time to see a professional. Set an appointment with one of our Licensed Insolvency Trustees who can guide you through all of your options.