Roles Your Licensed Insolvency Trustee Is Responsible For

Get help from a licensed insolvency trustee if you want a seamless experience paying off your loans and settling your debts from various creditors.

Having a licensed insolvency trustee aid you through bankruptcy will make the process smoother. These professionals can guide you and give sound advice on which actions to take so you can clear your debt and manage your finances.

One of their primary roles is to give you a rundown of how the bankruptcy process goes. It also includes giving you an idea about what to expect and the possible outcomes when you choose to go through bankruptcy.

Licensed insolvency trustees or LITs also administer the communication and administration of all documents involved. They will also oversee your duties if the creditor does their end of the bargain.

What Is a Licensed Insolvency Trustee?

LITs in Canada are trustees that are legally authorized to aid people in resolving as well as managing their consumer debt as well as government debts. It also included individuals who want to fix their business-related debts.

You don’t need to wait until your debt problems become unbearable. LITs can still help people who pay standard loans so that they can sort out their debts before things are too late. It’s never good to wait until your situation reaches a stressful point.

LITs can give good advice on how to pay your dues, and you won’t have to spend too much time on it. Some loans can take decades to pay off when not checked well. A LIT can give you a better solution for paying back faster and in a more practical way.

Responsibilities of an Insolvency Trustee

If you’ve decided to ask for help from a LIT, you also need to know their core responsibilities. LITs are assigned various heavy roles when it comes to bankruptcy—learning more about how these roles work can help you understand how to work with your LIT.

• Managing Monthly Payments

Trustees are usually responsible for handling the monthly payments debtors must pay creditors. If your case requires you to pay off creditors from your assets, then the trustee will be the one that manages your finances and pays off the right amount to creditors who are prioritized.

Usually, debtors will be assigned by the court to settle payments through schedules. One of the most popular options is paying back debt every month. You will also have to follow scheduled payments using approved assets when dealing with bankruptcy.

• Controlling the Interaction Between Parties

The good thing about working with a trustee is that you no longer have to face the creditors alone. Plenty of debtors are stressed and also get anxious when talking to creditors. Through a trustee, you no longer have to worry about talking with the creditors, as the former will do the job for you.

• Managing Bankruptcy Proceedings

Trustees are also tasked with ensuring that both parties follow the bankruptcy procedure. They will work not only with you but with your creditors as well. They make sure that each party submits documents and other requirements on time.

• Initial Evaluation of the Case

Before any payments or meetings occur, the trustee is in charge of evaluating the case first. They will gather all the information and documents before setting up the case for you. Their main goal is to help set the case from the point of view of the debtor so that it will be easier for you to understand how bankruptcy works.

• Meeting the Debtor and Responding to Concerns

Trustees are responsible for meeting with the debtor when ended. Some trustees don’t have to meet with debtors and only choose to communicate with them online, depending on your situation.

All they have to do is talk with debtors to clarify and confirm the information and give you options on potential solutions. Trustees will also take care of any forms you have to fill out, give you crucial information, and accept claims against the debtors.

• Educating You About Bankruptcy

As mentioned, trustees are responsible for giving you information and educating you about bankruptcy. If there are things that you’re confused about with bankruptcy, you can always talk to your trustee.

• Notifying Creditors on Your Behalf

Since there’s no communication needed between creditors and debtors, you can leave the talking to trustees. They will be responsible for contacting your creditors for you. The communication goes through the trustees whenever it’s to call them for meetings or to ask for documents.

• Arranging the Meeting of Creditors

The meeting of creditors is one of the most critical meetings in the bankruptcy process. Creditors are optional for the meeting, but they can choose to join. As the debtor, you need to be present in reviewing the bankruptcy filing procedure.

• Equally Distributing Funds

Funds need to be equally distributed between the creditors. Things like acquiring funds from the debtor collecting appraisals, and also managing assets are all part of the trustee’s responsibilities. Whatever the trustees get from these activities will go to the creditors equally.

• Monitoring the Debtor’s Duties

It will be the trustees that will monitor the debtor’s duties in the bankruptcy process. They will ensure that you get good advice and undergo financial counselling to help you recover from your financial stress.

• Facilitating Bankruptcy Discharge

It will also be up to the trustees to facilitate the bankruptcy discharge once the proceedings are over. The discharge is when the official court order is given where your debts need to be cleared or done within a set time.

Why You Should Work With LITs

Depending on your financial woes, you can always seek help from a trustee. They will help you when filing for bankruptcy and even when you want to draft a consumer proposal. Only some people are experts in dealing with debts and court cases which is why trustees are critical.

LITs will guide you and explain the process to make you understand what is going on and what is about to happen. You can always consult with the trustees whenever you feel comfortable with them or whenever you feel ready.

It will significantly help when you are informed of your choices and effective ways to resolve your financial burdens. If you need professionals focusing on debt management advisory and specializing in addressing and solving debtor concerns with creditors, then it’s time to call a local licensed insolvency trustee.