How Licensed Insolvency Trustees Help Canadians Get Out of Debt

Debt is a problem that most Canadians will struggle with at some point in their lives. As the saying goes, you need to have money to make money, and for most ordinary people the easiest way to get started in life is to borrow the capital they need to finance their dreams. 

Whether you want to go to university, purchase a business, or start a company of your own, taking on tens of thousands of dollars of debt is one of the only ways to do so. 

But while this “good debt” can help you build a prosperous and rewarding career, most of us also use credit cards and payday loans to help us through rough patches. And these high-interest, unsecured liabilities can quickly become a millstone pulling you into a debt spiral it can be hard to recover from. 

Fortunately, Canada’s legal system provides a number of avenues for people struggling with unsecured debt to chart a realistic course toward debt freedom. And if you want reliable advice from financial professionals who can help you explore your options, Licensed Insolvency Trustees are there to help you. 

 

Debt

Photo by Avery Evans on Unsplash

What is a Licensed Insolvency Trustee?

Licensed Insolvency Trustee (LIT) is a designation of professionals regulated by Canada’s federal government to advise individuals and businesses about insolvency and debt issues and to provide services to help Canadians deal with their debt load. 

Unlike other types of financial advisors, who may be working on behalf of a bank or brokerage, LITs and their fees are federally regulated. They are required to provide you with honest and accurate advice. This means that you can trust the advice they offer.

In addition to exploring your different avenues for debt relief, a LIT can also deal directly with your creditors on your behalf. For this reason, it is a good idea to work with someone based in your own community — if you live in Nanaimo, for example, a licensed insolvency trustee on Vancouver Island will be best suited to advise you. 

What Kinds of Debt Relief Can a Licensed Insolvency Trustee Help Me Secure?

LITs offer a variety of different services and are licensed to help you with the following forms of debt management and relief:

  • Debt consolidation 
  • Credit counselling
  • Debt settlements
  • Consumer proposals
  • Bankruptcy

Because they have extensive experience with a wide range of insolvency-related issues, they are ideally positioned to help you find the form of debt relief best suited to your particular situation. 

For example, if you’ve been thinking about filing for bankruptcy, they can recommend alternatives that will have a less long-lasting impact on your finances. If they conclude that bankruptcy is the best way forward, they can help dispel some of the common myths Canadians have about how bankruptcy impacts one’s life and career. 

But perhaps the most important service LITs provide is simply helping ordinary Canadians confront their debt problems in practical and realistic ways. In a society where debt is often seen as a failure, LITs play an invaluable role in helping clients understand that debt is a solvable problem and that a debt-free life can be achieved by anyone.  

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