Being Licensed Insolvency Trustees (LITs), our goal is to provide assistance to help individuals become debt free. A common false perception of LITs is that they are only necessary to file for bankruptcy. This is not true.
The first option that most Licensed Insolvency Trustees offer is a free consultation. This is very beneficial because LITs are highly educated professionals who can provide solid financial advice. There is also confidence in knowing that an insolvency trustee’s licence is regulated by the government. In addition, it is important to note for individuals who are in debt, that the first consultation is usually free.
Debt Consolidation Loans
Another option that an LIT can assist you with is applying for a debt consolidation loan. This loan allows all your debts to be combined into a single payment with an interest rate lower than that charged by your creditors. A debt consolidation loan is issued by a financial institution and used to repay your debts to several of your creditors at once.
Debt consolidation loans can also be obtained through mortgage financing, where your debts are paid out by a lender who then puts a charge against your house. Generally, the financial institution settles all your debts in exchange for a single monthly payment.
Consumer Proposals are another common method used to settle debts. It is important to note that individuals whose debts are below $250,000 (not including mortgages secured by your principal residence) are eligible for a consumer proposal.
A consumer proposal is legally administered by Licensed Insolvency Trustees (LITs). During this process, an LIT works together with you to develop the “proposal.” The proposal can be an offer to pay creditors a percentage of what is owed, or an agreement to extend the time required to pay off the debts, or both.
Payments are made to the LIT, the LIT then uses that money to pay each of your creditors. It is important to add that the term of a consumer proposal cannot exceed five years. On the bright side, consumer proposal can help end salary garnishments and other legal actions that might be against you.
Dodick Landau Can Help
We are Licensed Insolvency Trustees with the knowledge and experience in addressing the financial issues mentioned above. Our expertise can address any financial challenges you may face, including managing credit and most importantly finding a way to reduce or eliminate overwhelming debt.
If you need help, contact us by emailing email@example.com or call us at 416 736 4357 (HELP). You can also book a free consultation with no obligations by filling out the contact form on our home page.
Make an appointment today for a custom-tailored solution specific to your situation. We look forward to assisting you.