What Does a Licensed Insolvency Trustee Do?
When financial challenges become overwhelming, knowing who to turn to can make all the difference. One of the most trusted professionals in the world of debt relief in Canada is the Licensed Insolvency Trustee (LIT). But what exactly does an LIT do—and how are they different from other debt advisors?
The Role of a Licensed Insolvency Trustee
A Licensed Insolvency Trustee is a federally regulated professional authorized by the Office of the Superintendent of Bankruptcy (OSB) to help individuals and businesses resolve their debt problems. Their responsibilities include:
· Assessing your financial situation
LITs conduct a thorough review of your income, assets, debts, and expenses to determine the best path forward.
· Explaining your options
Whether it’s a consumer proposal, bankruptcy, or other alternatives, LITs provide clear, unbiased advice tailored to your situation.
· Administering legal debt solutions
Only LITs can file consumer proposals or bankruptcies in Canada. They handle all paperwork, communication with creditors, and ensure compliance with federal regulations.
· Protecting your rights
Once you file with an LIT, creditors must stop collection efforts, wage garnishments, and legal actions.
· Providing financial counselling
LITs offer mandatory counselling sessions to help you rebuild your financial health and avoid future pitfalls.
Unlike credit counsellors or debt settlement firms, LITs are the only professionals legally authorized to administer government-regulated insolvency proceedings. They are held to strict ethical standards and must act in the best interest of both the debtor and the creditors.
Why Choose a Licensed Insolvency Trustee?
Choosing an LIT means choosing transparency, accountability, and legal protection. Whether you're struggling with credit card debt, payday loans, or tax arrears, an LIT can help you explore your options and take the first step toward a fresh financial start.