How to Tell Whether You Need an LITNov 21, 2018
Do you really need to work with a Licensed Insolvency Trustee (LIT) in order to deal with your personal debt? Depending on your circumstances and the amount of debt you carry, the answer might be a resounding yes. In fact, if you are feeling overwhelmed by the amount of debt you carry and are struggling to make payments, working with a Licensed Insolvency Trustee is likely your best bet for tackling your debt and getting back on financial track.
Despite this fact, only two out of 10 Canadians are aware of the role that a Licensed Insolvency Trustee plays and only 51 per cent of Canadians indicated that they would consult a Licensed Insolvency Trustee if they are feeling overwhelmed.
With November being Financial Literacy Month in Canada, we thought it would be a great opportunity to help Canadians better understand the role of an LIT and how they can help. Here are four indications that working with an LIT is right for you:
You intend to file for bankruptcy or file a consumer proposal
You’ve done your research and made a plan that includes either filing a consumer proposal or filing for bankruptcy in order to find immediate relief from the debt you owe. If this is the case, working with an LIT is a must. In Canada, Licensed Insolvency Trustees are the only regulated debt relief professionals who are licensed to file consumer proposals or file for bankruptcy on behalf of their clients.
Working with a Licensed Insolvency Trustee also makes good sense as your LIT can work with you during your initial consultation to determine whether these formal solutions are right for you. For example, although you may think that filing for bankruptcy is the right step, you may be eligible, instead, to file a consumer proposal which carries fewer financial consequences.
You’ve exhibited debt warning signs
If you’ve exhibited any debt warning signs, it’s also a good idea to seek help from a Licensed Insolvency Trustee. Some serious signs to watch for include regularly missing or skipping bill or debt payments, asking friends or family for a loan in order to make your payments on time, relying on payday or cash loans or using one form of debt to pay off another form of debt.
You’re feeling overwhelmed
If you are feeling overwhelmed by the amount of personal debt you carry and are not sure how you will ever find relief, seeking helping before it’s too late is essential.
A free initial consultation with a Licensed Insolvency Trustee will help you determine whether working with an LIT Is the right step for you to take. If the answer is yes, your LIT will help you create a debt relief strategy that works and will provide you with advice and guidance throughout the process. If it’s determined that an LIT is not right for you, your LIT can provide additional resources and advice, including a recommendation for a credit counsellor who can work with you to manage your debt.