What is a Licensed Insolvency Trustee? Why the Change?
The formal name for a Trustee in Bankruptcy in Canada has recently been changed to a Licensed Insolvency Trustee (LIT) which will come into effect April 1, 2016 or sooner if trustees execute consent with the Office of the Superintendent of Bankruptcy.
Why the Change?
This change comes about as a result of a new Directive on Trustee Designation and Advertising which was released by the Office of the Superintendent of Bankruptcy (OSB) on December 2, 2015. The OSB introduction to the designation name change states the objective is:
“is to ensure that Canadians can recognize and easily identify individuals who are licensed by the Superintendent of Bankruptcy to provide services under the Bankruptcy and Insolvency Act (BIA), in order to facilitate informed choices about statutory options to address debt problems.”
The term “licensed” was introduced to promote a more professional public view of the industry, even though trustees are already the only professionals licensed by the federal government to manage debt restructuring in the Bankruptcy and Insolvency Act (BIA). Studies show that many Canadians are unaware of the differences between a licensed and unlicensed provider, so the new name works to put forth a stronger, more credible name for a variety debt settlement and financial assistance solutions.
Licensed Insolvency Trustee (LIT)
The new designation, LIT, is more encompassing than “Trustee in Bankruptcy”, reflecting the fact that trustees do a lot more than just provide bankruptcy services. LIT professionals are also licensed to put forth consumer proposals; division I proposals, among other services. Replacing “bankruptcy” with the term “insolvency” encompasses the statutory options available under federal insolvency legislation, including both bankruptcies and proposals. This name will better identify the professional services provided and can help to correct the misperception many Canadians have that a Trustee in bankruptcy only provides bankruptcy services.
Our new designation will help to position those licensed by the OSB, as a source for help and advice when an individual is struggling financially. As professionals, we are regulated and licensed under the BIA, and not only have statutory powers of the BIA to resolve an individual’s financial issues, but are most qualified to help consumers to learn about the debt management options available to them. These options include the potential for a consumer proposal in areas such as Ottawa.
Contact us for Personal Bankruptcy Services in Ottawa to Resolve Your Debt
If you are in debt and require financial counseling or assistance, contact us at D. & A. McLeod today. Our bankruptcy trustees in Ottawa (LIT on April 1, 2016) and surrounding areas help consumers and businesses develop a strategy to relieve their financial burdens in a way that only a licensed professional can provide.
We have a reputation for excellence from our clients and have been helping people for over 65 years. As Licensed Insolvency Trustees, we will help you or your corporation to determine what solution may be best suited to your individual or corporate needs, including the options for a consumer proposal; personal bankruptcy; credit counselling; and corporate restructuring, including a Division 1 proposal or corporate bankruptcy.
Contact us today for a free, confidential consultation at one of our 8 locations in Eastern Ontario at 613-236-9111 (our head office) or by contacting us at any one of our other locations listed on our website.