What is a Licensed Insolvency Trustee (LIT)?

What is a Licensed Insolvency Trustee (LIT)

What you need to know about LITs 

A Licensed Insolvency Trustee (LIT) is a professional who helps people who are having trouble paying their debts. LITs offer practical advice on different ways to solve debt problems, like budgeting and debt consolidation.

An LIT is the only professional who can administer government-regulated debt forgiveness programs, called consumer proposals and bankruptcies. These programs are designed for people who can’t pay back all or some of their debts.

An LIT is a professional who helps people fix their debt problems. If you are struggling with your debt, an LIT can offer one-on-one support and counselling on a wide range of debt relief options and help you find a path forward.

What are the advantages of working with an LIT? 

LITs are the most qualified professionals to help with your debt. They are federally regulated, which means they have to follow rules set by the government to protect both debtors and creditors. Their fees are also set by the government, so you know what you’re paying for. Unlike some other professionals, LITs can’t negotiate a deal where you pay less than what you owe. They also can’t offer personal bankruptcy services.

There are different types of people who can help you with your debt. Debt consultants and debt coaches are two examples. They can help you create a budget and manage your debt. However, it is important to be aware of the different services they offer and what it will cost you before agreeing to anything. Keep in mind that these professionals are not licensed or regulated, so they can charge whatever fees they want.

When should you ask an LIT for help?

Debt can be very scary. Collection emails, letters, phone calls and utilities interruptions are meant to scare you and make you feel bad. But don’t worry, you’re not alone. Risman Zysman Inc. LITs help thousands of Canadians resolve their debt every year. An LIT will not judge you or the amount of debt you’re carrying. Rather, they will work with you, by negotiating with your creditors and coming up with an arrangement that you can afford.

Finally, it’s important to remember that all LITs offer a free, confidential consultation. There is no obligation, no risk. This is your first step in finding the right kind of help for you.

How to choose the right LIT?

There is no obligation to work with the first LIT you meet. However, it is important to meet with different LITs so you can figure out which one is the best fit for you. You can read about other people’s experiences on our blog to get an idea of what to expect.

Taking the right amount of time

How long will the consultation last? The LIT will go over your whole financial situation. This includes looking at your debts, assets, household budget, and other expenses. They need to have a good understanding of your current financial situation so they can best advise you on your options. The consultation should last around one hour.

Clear choice of options

The LIT explains your options very clearly. They compare different options to help you understand the best solution for you. And, most importantly, you are able to ask as many questions as you like.

Empathy & Connection

Your LIT should be someone who can help you feel better about your debts and who is focused on finding solutions. They should listen carefully to your story and help you understand how you can achieve your goals.

If you are able to check these three boxes during your initial consultation, you can feel confident that you are working with the right person on your financial recovery journey. To learn more about the different solutions that are available to you, reach out to a Risman Zysman Inc. Licensed Insolvency Trustee today.