“Nobody can go back and start a new beginning, but anyone can start today and make a new ending.” Maria Robinson
In Canada, you are legally required to use the services of a Licensed Insolvency Trustee (LIT) to file for bankruptcy or a consumer proposal. Licensed Insolvency Trustees are licensed by the Superintendent of Bankruptcy, an agency empowered by and reporting to the federal government’s Industry Canada.
Licensed Insolvency Trustees give debtors advice and information on both consumer proposals and bankruptcy and it is their responsibility to see that the creditors and the debtor’s rights are upheld and that all parties follow the laws and rules that pertain to bankruptcy or consumer proposals. They may also be required to hold in trust and then distribute to creditors the funds and property involved in a debtor’s bankruptcy or consumer proposal.
The licensed insolvency trustee is required to arrange a minimum of two financial counselling sessions during the process of the bankruptcy. Licensed Insolvency Trustees are Professional Debt Consultants whose knowledge of money management and the resources available to debtors in trouble can be used to improve your financial situation and long-term outlook. A Licensed Insolvency Trustee’s assessment may show that, with a few changes, you can avoid bankruptcy.
The Licensed Insolvency Trustee is also responsible for calling creditor meetings and sending all notices and documents according to the rules set out by law.
If your situation is such that independent legal advice is necessary, your Licensed Insolvency Trustee can provide you with the names of lawyers who specialize in insolvency
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