Licensed Insolvency Trustee (LIT) or Debt Relief Specialist? Know Your Options

Licensed Insolvency Trustee (LIT) or Debt Relief Specialist? Know Your Options

 Struggling with debt is stressful, but you don’t have to handle it alone. Understanding the options available to you when you decide to resolve your debt and get your finances back on track is the first step. It’s essential to have an advocate look out for your interests—not those of your creditors—in order to get the best possible result when making a consumer proposal or a bankruptcy.

There are often considerable differences between a proposal drafted to your creditors by an advocate on your behalf, and a proposal prepared to your creditors by an individual representing your creditors. 4 Pillars Sudbury debt consultants can guide you through the process and help you turn things around.

A proposal or a bankruptcy has to be administered by a Licensed Insolvency Trustee (LIT). It’s a good idea to learn about the different roles a LIT and a 4 Pillars debt consultant fulfill before you get started.

Role of a Licensed Insolvency Trustee (LIT)

A licensed insolvency trustee is an officer of the court licensed to administer proposals and bankruptcies. One of the responsibilities of an LIT is to notify your creditors that they have thoroughly examined your affairs in order to make sure that a proposal or bankruptcy is fair and reasonable, and to assure the creditors that you will be able to pay it. If you file a bankruptcy, your entire estate then vests with the LIT. Meaning they have power and control of what you are able to do with a number of your assets. It’s important to note that one of the LIT’s roles is to represent your creditors. While the trustee can provide you with information and advice about these processes and ensure that your rights as well as the rights of the creditors are respected, his/her fiduciary duty is to your creditors.

Role of a Debt Consultant

At 4 Pillars Sudbury, we strongly believe that every person is entitled to professional representation when preparing a consumer proposal or bankruptcy. In fact, we consider it essential that a qualified professional represent the client/debtor during the process. Unfortunately, Canada’s insolvency system is not set up this way. Clients are not apprised on who represents who, how parties get paid, etc. Another downside of the system is that there isn’t adequate information provided to the debtor to make an informed decision on these important matters; and let’s face it, solving financial difficulties is a major decision with long-term consequences.

While only an LIT can legally file a proposal or bankruptcy, you always have the right to hire a debt consultant to protect your interests to make sure that you get the best possible result. 4 Pillars debt consultants will advocate for you and only you throughout the process, with no conflict of interest.

Main differences between a Licensed Insolvency Trustee and a 4 Pillars Debt Relief Specialist are:

	4 Pillars Debt Relief Specialist	Licensed Insolvency Trustee
Free first consultation	YES	YES
Solely represents the interest of the debtor	YES	NO
Acts as an advocate for a consumer struggling with debt	YES	NO
Represents the debtor to get the best possible result from a consumer proposal	YES	NO
Provides a comprehensive credit rebuilding program to rebuild credit within 24 months	YES	NO
Utilizes various LIT’s to achieve the best result for the consumer	YES	NO
Has access to products that can remove a consumer proposal from your credit rating 5 years sooner than any company in the debt industry	YES	NO
Role in the industry is to provide financial education and rehabilitation to consumers	YES	NO
Is on officer of the court	NO	YES
Has a fiduciary duty to your creditors	NO	YES
Receives a greater fee the more the debtor pays to the creditors	NO	YES

 

A 4 Pillars debt consultant will help you to:

• Reduce your debt by up to 80 percent
• Work to make sure you retain your assets
• Develop a comprehensive credit rebuilding plan
• See you completely debt-free within 5 years

Before debt completely takes over your life, contact a 4 Pillars Sudbury debt consultant and learn about the options available to you. We can provide the support and guidance you need to become debt free, rebuild your credit, and achieve your future financial goals. We look forward to working with you.