Should I Speak With a Licensed Insolvency Trustee (LIT) in BC?

As the calendar turns over to the New Year, many of us take some time to reflect on how we would like our lives to change for the positive. One of the main themes in this complex web called life is our finances and debt load.

For most, a New Year’s resolution about money is not uncommon. You might want to save more, invest better, or pay down debt. But what if you have already tried to pay down debt with little to no result?

Maybe there is a better question to ask: should you speak with a Licensed Insolvency Trustee (LIT) in BC?

Key Indicators That You Should Speak With a Licensed Insolvency Trustee (LIT)

Asking for help is a difficult decision—especially with the personal and private nature of finances. We all want to solve the issue ourselves. But pride can result in poor choices (for example, we know of many folks who sell assets that they can keep by law). Plus, more effort or and changes to your spending habits are good ideas, but often not enough. There comes a time when external help is needed.

Here are some classic signs that signal it is time to get some advice:

• You cannot pay your monthly bills when they are due
• Your interest payments take up most of your monthly payment
• You have missed payments
• Your credit score continues to drop
• You have to go for a payday loan each month
• The balance on your credit cards continues to rise
• You delay your tax return filing
• You receive calls from collection agencies
• Someone garnished your paycheque

If you have experienced some of the above signs, your debt is probably beyond the critical mass where the interest prevents you from paying it down. When your total debt is more than your assets, technically you are insolvent and should look to find some debt relief.

How an LIT Can Help You

Licensed Insolvency Trustees, formerly known as Bankruptcy Trustees, are highly trained individuals licensed by the federal government to assist both individuals and corporations with debt management and debt relief.

Typically, LITs achieve their Chartered Professional Accountant (CPA) certification and then take further exams to qualify as a Trustee. LITs also follow a code of ethics and take ongoing annual professional development courses. As a result, you can be confident that a LIT provides you with sound, experienced, and well-thought-out advice.

The vast majority of LITs across Canada offer a free initial meeting where we will conduct an assessment of your financial situation and provide some practical ideas of what to do next.

More specifically, here are several ways an LIT can help you:

• Provide a debt overview: LITs offer specialized expertise about your specific debt situation.
• Offer asset guidance: We advise on what assets you can keep and what you might have to sell or give up.
• Open access to support resources: LITs give directions to other resources where you can find other types of help.
• Suggest loan considerations: Bankruptcy trustees will happily discuss the pros and cons of a bank consolidation loan.
• Avoid scammers: We will help you avoid fraudsters or tricks by non-licensed debt advisors.
• Discuss a Consumer Proposal: LITs can guide you as you file a federally approved debt consolidation plan known as a Consumer Proposal.
• Evaluate the use of Bankruptcy: Your LIT will investigate whether a bankruptcy filing might be the fastest and most practical way to gain relief from your debt.

How to Find a Licensed Insolvency Trustee in BC

Finding a LIT office in BC is not difficult, as you can do an internet search or go to the database kept by the Federal Government. The difficult task is discerning whether you are talking with a real, certified LIT and whether or not they are in BC. Since the COVID-19 pandemic, the rules changed and LITs can now provide assistance via phone or video from different locations. Furthermore, at some offices, you must speak with an administrator before you can talk with a LIT, which confuses the issue.

At Chase & Associates, our office is based in BC and we have always felt that it is important to be able to meet face-to-face as much as possible. However, we still do offer phone or video meetings if the circumstances make that the best choice. In addition, as much as possible, your initial meeting is with a LIT. Here is a link to our office locations.

Conclusion

If one of your goals in 2025 is to get better with your finances (and in particular, free yourself from debt) then talking with a Licensed Insolvency Trustee is an excellent place to start.

Contact one of our offices to set up a free initial consultation where we can discuss your situation and what might be the best path forward.