Do you know where you can turn if you are struggling with the stress and pressure of difficult debt? Or perhaps you are currently living under debt and are starting to grow weary of the calls from collection agencies reminding you to pay outdated bills. When you’ve become insolvent, there are credit professionals who can help you, they’re called Licensed Insolvency Trustees (though they were formerly known as bankruptcy trustees).
What Is Insolvency?
Somebody is technically insolvent once the amount of debt they owe is more than the total value of their assets. Insolvency also refers to the state in which a person (the debtor) is unable to pay their debts because of a lack of cash flow or an insufficient income.
Essentially, if you owe more than you own then you are insolvent. But don’t let this realization get the best of you. It’s possible to recover from debt even if you can’t see a way to pay it all. Turn your financial stress into a second chance when you get more information from David Sklar & Associates and plan to meet with a bankruptcy trustee. They’re your full-service stop for debt reduction, relief, and recovery.
What Are Bankruptcy Trustees?
These licensed credit professionals know the intricacies of legislation in the Bankruptcy and Insolvency Act, so they can answer questions and point you to the right solution for your case. Since you will be working with your trustee throughout your entire bankruptcy or consumer proposal, it’s incredibly important that you have a good rapport and sense of trust with this person. You’re going to be seeing a lot of each other.
They can also help you find the resources you might need to address any potential major lifestyle issues that are contributing to your finances such as addiction or poor mental health. Only a licensed trustee in bankruptcy can formally administer a consumer proposal or bankruptcy on your behalf, which makes them an essential piece in the puzzle of debt relief.
What Is The Trustee’s Role?
The bankruptcy trustee is a qualified debt advisor. As such, part of their role is to guide you through your financial options, review your situation, and give you advice on the best course of action to take for debt recovery. There are six major things that a bankruptcy will do:
• Provide a consultation to assess your debts and review your options for debt relief. Answer any questions you have.
• Prepare the official paperwork to proceed with a legal debt procedure like bankruptcy, a consumer proposal, or Division 1 proposal.
• Notify your creditors about the action you’ve taken, which will freeze all collections calls or legal action against you. They will then begin settling your claims in the terms of your bankruptcy or consumer proposal.
• Review your claims, distribute your assets, and generally oversee the bankruptcy (or consumer proposal) in all of its stages.
• Ensure that you attend and complete the mandatory credit counselling sessions and all other obligations of your debt relief.
• Apply for you to be discharged from your debt relief program, thereby eliminating your debt.
Accepting that you need an outsider’s help to regain control over your finances is not easy, but it’s the first and most important step in recovering from troublesome debt. Allow a Licensed Insolvency Trustee to reduce your debt amount and show you the best way to get back behind the wheel of your financial future.
