Asset Protection: Benefits of Working with a Trustee

How a Trustee Can Provide Asset Protection

Asset protection is something everyone struggling with debt needs to consider. If you’ve ever found yourself swimming in a sea of debt, you’re not alone. Money troubles can happen to the best of us, but the good news is there’s help available. One unsung hero in the world of personal finance is the Licensed Insolvency Trustee (LIT). They are the pros you want in your corner when it comes to getting a grip on your finances, especially when it comes to asset protection. In this article, we’ll break down how LITs can be your asset-saving superheroes.

 

Understanding Licensed Insolvency Trustees

Who Are Licensed Insolvency Trustees?

A Licensed Insolvency Trustee is a certified financial expert specializing in helping individuals and businesses manage debt. The government authorizes them to administer consumer proposals and bankruptcies, making them crucial in financial recovery.

Their Role in Debt Relief

LITs go beyond advising; they solve problems and guide you to the best debt relief solutions. They expertly navigate options from consumer proposals to bankruptcy, always prioritizing your financial health.

Regulatory Oversight

The Office of the Superintendent of Bankruptcy (OSB) in Canada regulates LITs, ensuring they meet high standards for your protection.

The Importance of Asset Protection

Life’s financial complexities, like mortgages and retirement planning, underscore the need for asset protection. It secures your financial future against unexpected challenges.

LITs: Your Guardians in Asset Protection

LITs excel in guiding you through financial difficulties with tailored asset protection strategies.


How Licensed Insolvency Trustees Protect Your Assets

Step 1: Consultation and Assessment

Your journey starts with a free consultation where the LIT evaluates your financial situation, focusing on your debts, assets, and goals.

Step 2: Choosing Between Consumer Proposals and Bankruptcy

LITs guide you in choosing between consumer proposals and bankruptcy, tailoring their advice to your unique financial situation.

Step 3: Asset Evaluation and Exemption

LITs bring their deep knowledge of asset protection laws to ensure you understand which of your assets you can protect.

Step 4: Crafting Asset Protection Strategies

After identifying your assets, LITs develop strategies to maximize your exemptions and minimize losses.


Consumer Proposals: A Route to Debt Settlement

A consumer proposal is a negotiated agreement to repay part of your debt. It’s ideal for those looking to avoid bankruptcy while keeping their assets.

Benefits of Consumer Proposals

This method lets you control your assets, reduces bankruptcy stigma, and sets up a manageable repayment plan.

LITs: Skilled Negotiators

LITs negotiate with creditors to reach an agreement that safeguards your assets.


Bankruptcy: A Strategic Choice

Sometimes, bankruptcy is the most practical option, especially for those with few assets and overwhelming debt.

Navigating Asset Treatment in Bankruptcy

Bankruptcy involves different asset treatments. LITs guide you in understanding how each asset is affected, helping you make the best decisions.

Legal Protections and Insights

LITs have a thorough understanding of Canadian insolvency laws, ensuring you receive all legal protections.

Dispelling Insolvency Myths

LITs actively debunk common misconceptions, empowering you to make informed decisions about asset protection.

Choosing the Right Licensed Insolvency Trustee

Finding a trustworthy LIT is essential. Research their experience and reputation, and choose someone whose approach aligns with your needs.


Conclusion

Licensed Insolvency Trustees are key in guiding you through financial challenges. They offer paths like consumer proposals or bankruptcy to help you emerge from debt while protecting your assets. In times of financial distress, expert help is at hand, and LITs are committed to keeping your assets secure. Reach out for a consultation to begin your journey towards financial stability

.

**Get asset protection and reduce debt by CLICKING HERE**

Save First & Small Savings=Credit Cards

savings-passbookSave first and Small Savings become Credit Cards

Save first and your savings will help you be realistic and you will be able to live on less. It is a mistake to feel entitled to purchase—that feeling of entitlement or language such as: I deserve it! is a false positive. Instead tell yourself that you are entitled to save. Open up 3 savings accounts to help you save for a variety of different items and life events. First, you need a savings for 3 months emergency. Second, you need a short- term savings and you can use this account every time you feel the need to use a credit card. Third, open a savings account that you can not access easily or by debit card. You will be likely to spend from this account because you will have time to think about whether or not you need the item you want to purchase.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

What Happens If I Lie To My Licensed Insolvency Trustee?

What Happens If I Lie To My Licensed Insolvency Trustee?

It is a statutory obligation for every person filing an assignment in bankruptcy to make full disclosure of all assets, liabilities, income and living expenses. As well, you must disclose information as to the disposal of any of your assets within the past 12 months (5 years if the asset is real estate). If you intentionally do not disclose significant information to your trustee, you will have your discharge from bankruptcy opposed by the trustee.

You might even be required to appear in court to explain why you did not disclose full and complete information. The court can impose penalties on you, depending on the significance of the non-disclosure. You should also be aware that you are asked under oath to swear that all of the information that you gave to the trustee is reasonable and accurate to the best of your knowledge and belief.

Swearing a false affidavit is called “perjury” and now you may be charged under the Criminal Code as well as under the Bankruptcy and Insolvency Act. Not a good situation to find yourself in when you are already stressed out over your debts.

Please read our blog entitled – How a Trustee Searches for Hidden Assets.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form.

To learn more please visit our YouTube  Channel. 

Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.  

How does a Licensed Insolvency Trustee find hidden assets?

When you fill out the Application Form to file an assignment in bankruptcy, you provide information about yourself and your assets, liabilities, income, expenses as well as your financial history. You will also be asked to supply the trustee with creditors statements, lawsuits, copies of your last income tax returns, current pay stub, your personal bank account for the last 12 months, business financial statements and business bank accounts as well as any other information that the trustee feels he needs. The trustee is not being intrusive–he is just doing his job in the administration of your bankruptcy. He is making sure you are being truthful about your affairs.

Creditors statements and bank accounts are reviewed to see who you owe money to as well as what you charging on credit. If there are significant duplication of purchases of electronics, you will be asked if you are buying electronics on credit and selling them for cash to finance an addiction. Taking numerous cash advances at a casino is obviously a gambling problem which will usually result in you being asked to sign a Self-Exclusion form so that you will no longer be able to go to a casino. The trustee will also be obligated to file an opposition to your discharge. Payments to mortgage companies, insurance companies, secured lines of credit will be matched against your listed assets. If you made a cheque payable to a marina – did you declare ownership of a boat? If you charged gasoline – did you declare ownership of a car? The list goes on.

Your income tax return will be reviewed for any deductions or carry forward balances pertaining to RRSPs, RESPs, RIFs, business losses, number of dependants living with you, etc. Your pay stub might show a deduction for Canada Savings Bonds, Life Insurance or other assets. Many trustees are capable of searching for assets being financed via registrations of the secured lender under the Personal Property Security Act which covers almost everything other than real estate.

And last – your creditors.   Every time you fill out a credit application, you are giving information about yourself, your family, your job, assets with their value. In years gone by, this information might be buried in a file folder in a storage room in the basement.

Today, it is likely scanned and can be retrieved in a few seconds. If a creditor notices that an asset of significant value has not been shown on your list of assets, they will contact the trustee about the discrepancy. Hopefully, the trustee will determine that the asset was sold between the date of the credit application and the date of the bankruptcy and the sale proceeds were properly accounted for.

But what if you forgot to disclose an asset. As soon as you discover the omission, notify the trustee. If the error is not significant, he will correct his file and nothing further will happen. If the error is significant – i.e.- the asset information given to the creditors at the start of the bankruptcy was not correct to the point of being misleading, the trustee will prepare documents to amend the original Statement of Affairs and this will be sent to all creditors, the court and the Office of the Superintendent of Bankruptcy. An explanation as to why the asset was not properly disclosed will have to be provided but the fact that you voluntarily disclosed the missing information will show that you only made a mistake and it was an accident and not intentional on your part to mislead your creditors.

Does a trustee check your bank account?

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.