What is a Licensed Insolvency Trustee?
Filing bankruptcy requires the services of an LIT (Licensed Insolvency Trustee), formally known as a Bankruptcy Trustee. They are an Officer of the Court. Their job is to investigate your affairs, ensure you are not committing fraud, and ensure you understand how the process works. They are also there to protect the interests of the creditors as well as ensuring your rights as a consumer are respected. These rights include things such as ensuring creditor calls stop, making sure you understand the process.
Due to their role, a licensed insolvency trustee is unable to act as a true advocate for the consumer. In fact, if they were to do so it would jeopardize their license.
Are all Licensed Insolvency Trustees in Nova Scotia the same?
While all Licensed Insolvency Trustees are licensed by the federal government and use the same ‘rule-book’, the bankruptcy and insolvency act, not all licensed insolvency trustees interpret the ‘rules’ in the same way. This means from one trustee to another you may end up paying, or saving thousands of dollars. This is why it is important to interview several trustees and other debt professionals (and ensure you are reviewing all other options, like a consumer proposal)
Best Bankruptcy Trustee Nova Scotia
Licensed Insolvency Trustees were formally known as bankruptcy trustees until most recently. As mentioned above, every trustee is different.
This way all your options can be reviewed, including those outside the bankruptcy act.
We’d love to be that resource no matter the options you are pursuing. We promise the following:
- We provide a free consultation that is completely confidential.
- We will ensure you understand every option available including the alternatives, like a consumer proposal, and all other options.
- Our role is to exclusively represent you.
- We are a top-rated debt relief company in Nova Scotia and we take that very seriously.
If you want to setup up a free confidential consultation to discuss how we can help you with your financial situation click here to become debt free.
How do bankruptcies work in Nova Scotia?
At a fundamental level, bankruptcies are based upon how much income you make and what type of assets you have. To learn more we highly recommend reading our in-depth guide on bankruptcy in Nova Scotia.
What do you lose when you file for bankruptcy?
The majority of consumers in Canada lose absolutely nothing when they file, despite having assets. This is because there are provincial and federal exemptions to assets that protect them from creditors. While a larger list is available in our bankruptcy guide, linked above, please find the two most common exempt assets in Nova Scotia.
- A vehicle that has a value of up to $6,500, and
- RRSPs except for the last 12 months of contributions.
How do you file bankruptcy in Nova Scotia?
The process of filing for bankruptcy in Nova Scotia is no different than filing for bankruptcy in any province across Canada. If you owe at least $1,000 and are insolvent (generally defined as either having more debt than assets and/or as not being able to pay your bills as they are due) you can file bankruptcy.
When you meet with your debt professional they will outline all of your options, ranging from budgeting all the way to bankruptcy and everything in between, including consumer proposals and debt consolidation. Ultimately, the decision to file bankruptcy is yours. However, your chosen professional will assist you in understanding the true pros and cons related to the various options.
If you are considering any sort of debt relief and would like a professional opinion we would be more than happy to provide one! Contact us here.
This article was written by David Moffatt, a Debt Relief Expert. He has helped assist in creating plans that have helped save Nova Scotia residents over $30 million dollars of consumer and tax debt since 2015. We believe that no consumer should have to struggle with the stress of overwhelming debt. Our debt restructuring strategies can help you cut your debt by up to 80%.
If you are struggling with debt please reach out. It hurts to continue to suffer financially. Halifax Debt Freedom services Halifax, Dartmouth, Bedford, Sackville the entirety of HRM, and all of Nova Scotia.