The Benefits of Managing Bankruptcy with a Licensed Insolvency Trustee
When seeking financial assistance, we tend to assume debt settlement companies have our best interests at heart. Unfortunately, a rising number of Canadians are falling prey to companies with dishonest intentions. Their hopes for debt relief are dashed when they find themselves in a worse financial situation than when they started.
If you’re considering debt consolidation, you have enough to worry about without the added stress of whether you chose the right firm to help you. Many companies who claim to offer debt assistance should be closely examined before you entrust them with your financial information. When searching for a reputable debt professional, a Licensed Insolvency Trustee, or LIT, has the expertise and the credentials to help you move towards a better financial future.
Licensed Insolvency Trustees are professionals who are federally regulated by the Office of the Superintendent of Bankruptcy. This is an important distinction to note because LITs are the only professionals who are licensed to file bankruptcies and consumer proposals on your behalf. Not all firms that offer debt relief services are Licensed Insolvency Trustees, and these debt consultants are unable to protect you from your creditors under the Bankruptcy and Insolvency Act. After completing extensive studies, LITs are bound by the standards of practice outlined in the federal Code of Ethics for Trustees.
Licensed Insolvency Trustees can assist with a wide range of debt relief options including personal bankruptcy, consumer proposals, and corporate insolvency:
Licensed Insolvency Trustees have the expertise required to provide you with the best debt solutions for your personal circumstances. One option may be filing for bankruptcy, where your assets are assigned to the LIT for distribution to creditors. While most if not all of your debt of your debt will be eliminated, a Licensed Insolvency Trustee will ensure you understand all the implications of choosing this debt relief option.
Depending on your financial situation, you may decide to file a consumer proposal rather than declare bankruptcy. In this process, a Licensed Insolvency Trustee will help you prepare a “proposal” that outlines how much you will pay to creditors. The LIT is responsible for collecting these payments and distributing them to your creditors.
If you are experiencing financial trouble with your business, LITs are licensed to administer corporate insolvencies. The Licensed Insolvency Trustee will review the financial state of your business and will determine if you are responsible for any of the debts, such as outstanding source deductions.
Regardless of your financial situation, our Licensed Insolvency Trustee at Crawford, Smith and Swallow Inc. has the expertise and education required to help you effectively manage your bankruptcy or debt. Our LIT understands how this process can feel overwhelming and will ensure that you are well-informed of what will be expected of you. We offer free consultations where we provide an honest and thorough assessment of your debt situation and propose solutions that fit your unique circumstance.
Reach out to us to learn more about how you can move closer to financial freedom.