What Course Do Licensed Insolvency Trustees Take?: Licensed insolvency trustees (LITs) are financial professionals who are federally regulated. They provide services and advice to businesses and individuals dealing with debt issues. They can assist individuals in making better choices on how to deal with these kinds of situations.
In Canada, you cannot improvise yourself as a licensed insolvency trustee. To be specific, this profession is highly regulated, and for one to get a trustee license, one must meet certain requirements.
The Superintendent of Bankruptcy
The Superintendent of Bankruptcy office in Canada is very important. It reviews the license of a trustee under the Bankruptcy and Insolvency Act (BIA). This government agency ensures that the candidates meet all educational and experience requirements before issuing licenses.
Applicants must submit a registered education provider’s confirmation of degree or diploma, an affidavit from their employer attesting to at least two years of bankruptcy or debtor/creditor work experience within five years before application, and 22 credit hours in insolvency management, business law, and ethics.
The Requirements to Become a Trustee
To qualify as a licensed insolvency trustee, one must be a holder of a Canadian university degree and have at least five years of experience in the field of bankruptcy. A person who happens to be a member of a recognized Canadian professional association can also qualify.
To become a bankruptcy trustee, the candidate should also have a good reputation and must hold no criminal history or debts.
You will also undergo a complete evaluation process where the Superintendent will assess your skills, abilities, work ethic, judgment, professionalism, and understanding.
One may be interested in knowing What Course Do Licensed Insolvency Trustees Take in Canada. First, it is worth noting that for a trustee to receive a license, they must complete the CIRP qualification program, also known as the Chartered Insolvency and Restructuring Professional Qualification Program. The (CAIRP) Canadian Association of Insolvency and Restructuring Professionals is the body responsible for offering the course. It is a professional association that represents most of the License insolvency trustees in Canada.
In addition to that, a candidate must also complete another course known as Insolvency Counsellor’s Qualification Course. This is in addition to being considered a person who is solvent and has not gone bankrupt for at least five years. This is a prerequisite for all candidates. The trustee’s role entails advising many people on their financial constraints, and hence, they must be honest and respectful towards the profession.
What Do Licensed Insolvency Trustees Do?
Licensed insolvency trustees help Canadians in financial distress by providing them with options to deal with their debt problems.
A trustee performs the following activities: provides counselling to distressed individuals, reviews client financial statements to determine if bankruptcy is the best option, examines and analyzes financial records of the bankrupt, prepares and files bankruptcy claims on behalf of creditors, collects and distributes money from the estate available to pay creditors, and provides options which include personal or corporate voluntary arrangements.
A trustee is not a debt collector.
It is important for Canadians looking for assistance in dealing with their debts to differentiate the role of a trustee from that of a debt collector. Trustees help individuals, not companies or organizations. The rules governing the profession state that trustees are legally required to ensure that anyone applying for bankruptcy receives certain personal information about the process, including the consequences of filing for bankruptcy, options for repayment plans if one is unable to file for bankruptcy, and how long it will take for creditors to be paid.
A trustee is required to ensure that this information is provided before applying and whenever a client asks for it at any time during the process. The profession also prohibits trustees from harassing people who owe money or collecting their fees on behalf of creditors.
Trustees are required at all times to protect the interests of debtors.
Trustees are professionals who have demonstrated expertise in their field, adhere to strict professional standards and ethics, stay current with industry trends and changes through training, and are appropriately licensed by the provincial regulator. Furthermore, trustees cannot collect on debts owed by an insolvent individual for two years before the bankruptcy. This ensures that all possible options are explored before resorting to bankruptcy.
Trustees & consumer proposals.
In addition to bankruptcy proceedings, trustees also assist in consumer proposals. In this type of procedure, a person with debt negotiates with creditors an arrangement for repayment instead of filing for bankruptcy. One can either file a proposal on their own or with the help of a trustee. If an individual cannot repay their debts when they file for bankruptcy, creditors will be paid thirty-six percent (36%) of what is owed, and most people who make an offer through this procedure can pay their debt in full within five years.
It takes more than just passion to become a licensed insolvency trustee in Canada. Professionalism is highly regulated, and not every Canadian may qualify to get this license. However, this does not mean that consumers in financial distress do not get any help. As mentioned earlier, licensed insolvency trustees are the only professionals who protect the interest of Canadians facing debt issues by providing them with viable options through consumer proposals and bankruptcy proceedings.