Being a Licensed Insolvency Trustee (LIT), I am sometimes confronted with this question. Sometimes, I even have to demystify the widespread idea that LIT’s work in the best interests of creditors.<\/p>\n
Note: this post was updated on March 5, 2018.<\/em><\/p>\n In fact, Licensed Insolvency Trustees are impartial justice officers<\/strong>. We favour neither the creditors nor the debtors. Our role is somewhat similar to the one hockey referees play.<\/p>\n On the one hand, Licensed Insolvency Trustees are charged, amongst other tasks, with recovering moneys and goods belonging to the insolvent debtor, in order to subsequently redistribute such assets between his creditors. Incidentally, there are strong indications that this is the reason why some people mistakenly tend to believe that LITs work in the best interests of creditors.<\/p>\n Yet, on the other hand, LITs are also invested with the task of helping debtors who are awash in debt to solve their financial problems. Throughout the bankruptcy<\/a> or consumer proposal<\/a> process, we will notably protect the debtor against other actions such as calls from collection agencies and wages garnishment. Therefore, given that by doing so we are actually helping these debtors to solve their debt problems, some people may instead feel that we work in the best interests of debtors.<\/p>\n In fact, it would be more accurate to say that, being impartial, LITs have a twofold mandate<\/strong>:<\/p>\n Just like hockey referees, LITs must make sure that both parties follow, during the whole process, the rules and understandings they agreed upon.<\/strong><\/p>\n In short, our role as a Licensed Insolvency Trustees is to find a common ground acceptable to all<\/strong>. We are the best equipped professionals to help, on the one hand, a debtor who is unable to pay his debts and, on the other, a creditor who has already tried everything to get his money. Regardless of circumstances, our duty is always to look for a fair solution which will enable the situation to be resolved.<\/p>\n No one wants to go bankrupt, and no creditor likes to lose money. But sometimes there are no other options. If this is your case, Ginsberg Gingras’ LITs are there to help you, and to guide you through the steps of the various solutions still available. We will always make sure that you are fairly treated, with respect and dignity.\t\tThe responsibilities of Licensed Insolvency Trustees<\/h2>\n
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Licensed Insolvency Trustees work in the best interests of all<\/h2>\n