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Do I have to declare bankruptcy if I call a Licensed Insolvency Trustee?

Article updated on 19/08/2019
There are some pervasive ideas about debt. For example, many people think calling a Licensed Insolvency Trustee means you have to declare bankruptcy. That’s not true. Bankruptcy is not mandatory. As a client, you have rights—and options!

Summary

Do I have to declare bankruptcy if I call a Licensed Insolvency Trustee?
  • Even if calling a Licensed Insolvency Trustee sounds stressful, know that making a call or going to an appointment does not commit you to anything. Taking these first steps won’t force you to declare bankruptcy.
  • The advisor’s job is to help you regain control of your financial situation. There are a number of solutions to debt problems—bankruptcy is just one of them.
  • You’re the one who will be in control and decide what you want to do.

You’re in control

The size of your debts is affecting your quality of life and you’re considering calling a Licensed Insolvency Trustee, but not sure if you should? You’re not the first person to feel like this. A lot of people feel nervous before they pick up the phone. It’s only natural to feel this way, but that doesn’t mean you should worry.

Why? Because making a call or having a first meeting doesn’t trigger any process. Especially not the personal bankruptcy process. You’re just making initial contact with a specialist. You can then decide whether to pursue any further actions with the specialist. You’re calling the shots! Your advisor will be there to support you along the way.

Your advisor’s job is to offer support

What exactly does a financial recovery advisor do? They’re the only professionals authorized by the federal government to protect you from your creditors using the law. They’re qualified experts whose job is to help you fix your problems with debt. From the moment you start working with one:

  • They become the sole point of contact for your creditors. They speak to the creditors on your behalf (meaning creditors won’t be harassing you on the phone anymore!).
  • They offer you a tailored solution.
  • They offer you support from A to Z, from your first meeting until you’re free of your debts.

To sum up, with a financial recovery advisor, you’re no longer alone and your situation can only improve!

You have rights

You’re not only supported as a client, you’re protected. After all, having debt doesn’t mean you stop having rights!

All of our advisors are committed to our charter of client rights. This charter guarantees that:

  • You will be treated with dignity and respect.
  • You will be heard and not judged.
  • You will be protected from your creditors.
  • You have the right to complete professional privilege.

The charter guarantees you a number of other rights, which you can find listed here.

There are alternatives to bankruptcy

One of the main fears of people who contact a financial recovery advisor is that they will be forced to declare bankruptcy.

This is unfounded. Even if bankruptcy may be one solution, there are others:

  • A consumer proposal
  • Debt consolidation
  • A voluntary deposit
  • Selling certain assets to pay debts

The various alternatives to bankruptcy come with their own advantages. Could they all work for you? Not necessarily. It depends on your situation. You can work together with your advisor to assess your options and choose the one that will work best for you.

Is bankruptcy your best option? It’s nothing to be ashamed of. There are benefits to bankruptcy. It allows you to leave your debts behind and start fresh from the beginning. Whatever happens, you won’t lose everything.