How a Licensed Insolvency Trustee Can Help with DebtNov 21, 2018
A Licensed Insolvency Trustee (LIT) may be seen as a last resort for dealing with personal debt. But with the vast majority of Canadians carrying some level of personal debt, and in honour of Financial Literacy Month, it’s important to understand the role an LIT can play in resolving your personal debt and improving your financial knowledge.
Financial literacy has only become a topic of discussion among Canadians in recent years. In the past, money was more often a taboo subject that each person had to manage on their own, sometimes without being taught any money management skills.
Today we know that it’s important to teach financial literacy skills so individuals can get out of debt and achieve their financial goals.
That’s where an LIT can help.
What is a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee (LIT) is the first professional you should talk to about debt relief. LITs are highly trained in helping people deal with their debt, and they understand the challenges that Canadians face at different times of life.
Another benefit of speaking with an LIT: they’re uniquely qualified to advise you on all debt solutions. And LITs are the only professionals licensed and regulated by the government to assist you with filing a consumer proposal or bankruptcy.
While these formal debt solutions are only considered when you’ve ruled out all other options, your LIT will be able to guide you through the process if you decide it’s your best option.
What happens in the first meeting?
In the initial meeting, the LIT will gather information on your financial situation. He or she will discuss strategies and solutions that might work to help you resolve your debt, and explain the steps of a consumer proposal and filing for bankruptcy.
But don’t wait until your debt is overwhelming.
Talking with an LIT before you need a formal debt solution can save you a lot of stress. There’s no cost for the first meeting, and the LIT can provide you with good information, tools and resources. Your LIT can also refer you to other professionals to help with budgeting, money management, consolidation loans and more.
How can talking to an LIT make life less stressful?
Your LIT is there for you, to help you find the best solutions and strategies to achieve your financial goals. You’ll feel less alone and gain new skills that will help you feel more in control of your financial situation.
If you decide that a formal solution is right for you, your LIT will also deal directly with your creditors, relieving you of that duty. A consumer proposal and bankruptcy are both complex processes. The role of an LIT is to manage the process and help you eliminate your debt.
In fact, just talking to an experienced professional who can answer your questions reduces stress.
Debt relief is something everyone deserves. The process of resolving your debt not only gets your finances on track, it’s an opportunity to arm yourself with information that will help you avoid debt in the future. That’s a valuable financial literacy lesson!
If debt is causing you anxiety and you’re having trouble figuring out what to do, meeting with an experienced Licensed Insolvency Trustee can help.