September 5, 2017

Who’s who and how does it work?

The insolvency industry is getting very confusing – recent changes from the Office of the Superintendent of Bankruptcy haven’t helped – Bankruptcy Trustees are now called “Licensed Insolvency Trustees” or “LIT” for short.

Although the internet and radio airwaves have been alive with suggestions of “New Government Programmes” to help people get out of debt these advertisements are simply either untrue or completely misleading.  There are no new programmes just changes and updates to existing legislation.

Industry Changes:

Some things remain the way they have always been, only Licensed Insolvency Trustees can file Consumer Proposals or Bankruptcies.

Debt Consultants can do nothing to help people except to prepare the necessary paperwork for Licensed Insolvency Trustees, and they still frequently charge exorbitant fees for doing so and provide no value to their clients.

Following the passage of Bill 55, July 1, 2015, only Licensed Collection Agencies (including not-for-profit Credit Counselling companies that are licensed as Collection Agencies) Lawyers and Paralegals can provide Debt Settlement Services.

The Execution Act of Ontario was updated, December 1, 2015, to include a Homestead Exemption, allowing homeowners to claim up to $10,000 worth of equity as being exempt from seizure by creditors.

To get more information about real, practical debt relief call the office at 519-646-2222 and arrange a private confidential consultation.