Consumer proposals are a great way to handle unruly debt. The people that handle them are Licensed Insolvency Trustees (LITs). These financial professionals have the training, experience and information necessary to ensure the process goes smoothly and any issues or concerns are addressed in an expedient manner.
The Benefits of a Consumer Proposal
For all the good that can come from consumer proposals, however, many find the process hard to initiate. Some of this certainly comes from a sense of pride and the fear that seeking help may somehow be a negative experience. Others may find it difficult to begin the process because they pursue other options first or think that with enough time, they can sort it out themselves. Thankfully, Licensed Insolvency Trustees are the best option in these situations.
The reason that LITs are a superior choice to payday or short-term loans, higher credit limits or other financial pursuits is that they are backed by the federal government. The entire Licensed Insolvency Trustee program is put on by the Office of the Superintendent of Bankruptcy, which is an organization within the highest order of government. The result is an assurance of quality service and upright conduct.
Things to Consider When Filing a Consumer Proposal
When filing your consumer proposal, you’ll want to ensure that you follow a few rules of best practice. These include finding an LIT near you, gathering your financial information and remaining amicable throughout the process. We break down each of these rules in detail down below.
Finding an LIT Near You
The easiest way to find an LIT near you is to visit the Office of the Superintendent of Bankruptcy’s online website. There, you will find a convenient map that shows the location of all the LITs in your area. You can also type the relevant search terms into your search engine and find your chosen professional that way.
Gathering Your Financial Information
After choosing the LIT that you will work with throughout the process, you will need to gather all pertinent financial information. This includes any credit cards, lines of credit and other forms of debt you may have, like loans and so on. It is important to be thorough, as the more upfront and comprehensive the information you provide, the easier it becomes for your LIT to reduce your debt and assist you on the path to financial freedom.
Remaining Amicable Throughout the Process
Perhaps the most important rule on the list, remaining amicable throughout the process is a benefit to you, your creditors and your LIT. Remember, everyone is interested in a successful consumer proposal or bankruptcy filing, so don’t overlook how important each of the roles in this situation can be.
Are Consumer Proposals Public Record?
Yes, consumer proposals and bankruptcies are part of public records. When you file for either of these, your record is accessible to anyone who makes a request for the information. Additionally, it is worth noting that consumer proposals will be part of your credit report for the duration of the term, plus another three years afterwards.
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