Effective April 1, 2017, professionals formerly known as a “Bankruptcy Trustee” will be designated as a “Licensed Insolvency Trustee” (LIT).
What is a Licensed Insolvency Trustee (LIT)?
A Licensed Insolvency Trustee is a federally licensed and regulated professional who helps people understand their options to deal with financial difficulties. A Licensed Insolvency Trustee offers an impartial view and acts in the best interests of all parties. A Licensed Insolvency Trustee’s role is a dual one – he/ she will investigate your situation and ensure your rights are not being abused but at the same time will protect the creditors rights.
How is a LIT different from a Debt Consultant?
Licensed Insolvency Trustees are very different than Debt Consultants and Credit Counsellors. The key differences are:
1/ An LIT is qualified. The Office of the Superintendent of Bankruptcy grants licenses only after years of studying and proven knowledge, experience and skills. There is no qualification or licensing process for Credit Counsellors
2/ A Licensed Insolvency Trustee (LIT) is federally regulated. The Office of the Superintendent of Bankruptcy oversees adhere to the strict rules of practice in the Bankruptcy and Insolvency Act. This includes a Code of Ethics for Trustees. Even the fees charged by a LIT are federally regulated.
What can a LIT do to help?
A Licensed Insolvency Trustee is the only professional who can administer the government regulated insolvency proceeds under the Bankruptcy and Insolvency Act to help you get fresh start free from debt. Consumer proposals and bankruptcies cannot be administered by any other parties. Trustees will deal directly with your creditors.