Who Can Provide Bankruptcy Service in Scarborough?

Only a Licensed Insolvency Trustee (LIT) is licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer bankruptcy service in Scarborough and elsewhere throughout Canada. No one else has the ability to file a bankruptcy. Even if you go to a bankruptcy lawyer, they will  refer you to a trustee as they are the only ones permitted by the federal government to manage bankruptcies, consumer proposals and assets held in trust in accordance with the Bankruptcy and Insolvency Act (BIA).

Licensed Insolvency Trustees are highly regarded officers of the court. They do not work for you or your creditors. They are bound by the law to protect your rights as well as to look out for the rights of your creditors and to ensure that the entire bankruptcy process is fair for all parties involved.

When you meet with a Licensed Insolvency Trustee in Scarborough, he will provide the following bankruptcy services:

• A free consultation to assess your debt, review your financial situation, answer any questions you may have in relation to bankruptcy, and to provide clear information on possible alternatives that could be available for your situation
• Prepare the necessary official forms for filing a bankruptcy
• Electronically file all necessary paperwork with the OSB to start the bankruptcy process and to declare you bankrupt in a formal and public way so you can obtain bankruptcy protection immediately
• Mail copies of your documentation to your creditors  to formally let them know that you have filed for bankruptcy
• Conduct fact finding process to find out if you have any nonexempt assets or any surplus income payments that can be used to pay back your unsecured creditors
• Review your bankruptcy papers to validate claims made by your creditors about what you owe
• Hold a meeting of creditors if requested at which you are required to attend to help creditors learn more about the causes of your bankruptcy and to give the trustee some specific directions
• Sell your assets, except for those that are excluded from sale by provincial and federal bankruptcy laws
• Hold all proceeds raised from the sale in a trust for distribution to your creditors once your bankruptcy has finished, usually after nine months if all conditions are met,
• Make the required bankruptcy payments to your creditors and ensure that the funds are allocated fairly to each of your creditors
• Provide you with the required financial counselling sessions that is part of your duties in a bankruptcy to help you understand what caused your debt situation and to equip you with the necessary skills to manage your financial affairs in the future
• Apply for your bankruptcy discharge to formally eliminate your debts and release you from any legal obligation of repaying them

Many people are sometimes misinformed and wrongly think that when they go to a Licensed Insolvency Trustee they have to file for bankruptcy. The fact is that LIT’s are licensed debt consultants and can provide other services to help you get rid of debt and avoid bankruptcy. These services include:

• Filing a consumer proposal to your creditors 
• Providing debt counselling which will include debt reduction, money management and budgeting advice to help you manage your debts without having to declare bankruptcy
• Negotiating settlement agreements with your creditors to help you come up with a favorable deal
• Providing referrals to local, reputable credit counselling agencies should you need their services

If you are facing a financial crisis and are constantly being harassed by collection agencies, or maybe you are worried about a wage garnishment, it is always best to consult with an expert who can provide qualified bankruptcy service in Scarborough to learn all the legal options available to help you manage your debt load. There is absolutely no obligation to proceed if you find out that bankruptcy is not the right solution for you. What you get is the opportunity to explore all your options and the realization that there are ways to help you deal with even the most extremely serious debt situation.