Can I Trust My Licensed Insolvency Trustee?

If you’re feeling trapped by debt and worry you’ve run out of options, it is often helpful to seek sound advice and effective solutions from a qualified professional to get your finances back on track. But with so many options, how do you know where to turn?

The market is filled with countless for-and-non-profit organizations promising to get you out of debt for good, but they’re not all are equal in expertise or their ability to help. Only one professional is qualified to offer the Life-Changing Debt Solutions you need. Even if they’re not the ones who ultimately get you there, you can trust a Licensed Insolvency Trustee to put you on the right track. Here’s why they should always be your first step on your journey to becoming debt-free.

Qualifications

Licensed Insolvency Trustees are the only professionals licensed by Canadian government to provide advice and administer formal, legally binding debt reduction proceedings. They are highly educated, familiar in all aspects of Canadian insolvency law and required to maintain strict standards of professional and ethical conduct. They are closely monitored by federal regulators and must always act in your best interests. Failure to do would not only jeopardize their professional standing and reputation, but potentially their license as well.

For eligibility to become a Licensed Insolvency Trustee, an individual must first complete the Canadian Insolvency and Restructuring Program and the Insolvency Counselors course. To obtain their license, they must then score well on the National Insolvency Exam and pass a comprehensive oral board examination. Once an individual is licensed, they must then be mentored by a senior trustee in a professional environment to learn how to apply their technical knowledge in a practical setting.

What Sets Licensed Insolvency Trustees Apart?

Licensed Insolvency Trustees are stewards of provincial and federal insolvency law. They ensure both debtors and creditors adhere to the Bankruptcy and Insolvency Act of Canada and applicable provincial legislation. Not only can they administer certain proceedings and debt reduction solutions on the client’s behalf, they ensure all parties achieve fair and reasonable resolution to a given debt situation.

While other service providers can offer guidance and support and work with your creditors informally, only a Licensed Insolvency Trustee is qualified to administer formal debt solutions such as consumer proposals and personal bankruptcies. And despite bold claims or advertising slogans from other unlicensed service providers, only a Licensed Insolvency Trustee can guarantee you will be debt-free when your file is closed.

See a Licensed Insolvency Trustee First

Under the Bankruptcy and Insolvency Act of Canada, Licensed Insolvency Trustees are required to offer a free, confidential consultation to all individuals who come to them for help. During this consultation, they will provide a comprehensive financial assessment and review your debt situation to determine all possible options as well as your best path forward. They will explain your opportunities in depth, make recommendations and equip you with all the information you need to make the most educated decision given your unique circumstances. If you would benefit from a consumer proposal or bankruptcy, they will be happy to help you through either of those processes. If you would benefit more from a different solution, they will help you find a reputable credit counselor, debt manager or financial advisor who can offer the help you need.

Relationships Trump Everything

Your free consultation is an great opportunity to learn about your options, but also to get to know the person you are working with. Above all else, you need to feel comfortable in your partnership and believe wholeheartedly your Licensed Insolvency Trustee is helping you achieve a desirable outcome. You should feel welcome to ask questions, and they should understand the consultation process is as much about building a relationship as it is about providing information. They should be willing to communicate and listen to your concerns. And you should not feel judged, embarrassed or pressured into doing anything you don’t feel is in your best interest.

Your decision to move forward with a debt reduction plan will have significant short and long-term consequences. You may be working with this person for five or more years, so it is critical you trust the person sitting across the table from you – regardless of their title, qualifications or professional requirements. If the environment doesn’t feel as welcoming and amiable as you believe it should, you may want to meet with several other Licensed Insolvency Trustees until you find one you are happy with.