It’s difficult to know exactly when you should seek financial help when you’re caught up living paycheck to paycheck. Sometimes, you don’t know the kind of situation you’re in until all of your bills pile up and you feel like you’re drowning under the pressure. Below, you will find information regarding the appropriate time to consult a licensed insolvency trustee and what you should expect from your first visit.
Financial Warning Signs
There are a few signs to watch out for when considering your financial situation. For example, the most evident sign is finding yourself with zero or even negative funds left after paying your bills for the month. This is a clear sign of insolvency. But there are more signs that you may have not considered that could mean that you are on the path towards insolvency:
- Relying too heavily on your credit cards
- Applying for new credit cards because you maxed out your other one(s)
- Using one credit card to pay for another
- A big portion of your monthly income goes towards paying off the interest on your loans/credit cards
- Not having any savings
If this all sounds familiar to you, then you may have to consider booking an appointment with a Licensed Insolvency Trustee (LIT). LITs will analyze your financial situation and will provide you with debt solutions in the most efficient and thorough manner. They will explain and walk you through processes such as bankruptcy, debt consolidation, consumer proposals, and voluntary deposit.
More importantly, they will take over the communication between you and yours creditors and will ensure that you are never harassed or have to go through wage garnishements. Having a Licensed Insolvency Trustee means that no legal action can ever be made against you. This greatly relieves the insurmountable burden you may currently be feeling.
Since they are regulated by the government, you can rest assured that they maintain a high standard of ethics, and possess the necessary skills and experience to help you through your personal financial crisis.
What to Expect from Your First Visit
Your first consultation with a Licensed Insolvency Trustee may be nerve-wracking. After all, discussing one’s financial situation is often perceived as ‘taboo’. That’s why below you’ll find what to expect from your first visit so that you feel comfortable and prepared when comes the time for you to consult your trustee.
You Licensed Insolvency Trustee Will Ask You a Lot of Questions
Don’t be alarmed or surprised by how deeply your LIT will want to delve into your financial situation! You may have to spend half an hour just answering questions about the state of your finances. They do so from a place of understanding and compassion. There is absolutely no room for judgement. This collection of information simply ensures that your trustee has everything they need in order to determine the best course of action for you. Generally, they will review all of your assets, liabilities, living expenses, as well as your income and previous financial situations (i.e, if you ever filed for bankruptcy in the past). This would also be the time for you to discuss any concerns you may be having.
They May Ask You for Some Documentation
Again, in order to ensure that they have all of the information necessary to provide you with the best solution to your financial troubles, you may need to supply them with documents such as:
- a copy of your last pay stub
- a copy of your tax returns for the last two years
- a list of your creditors
- a copy of your current credit report (we are able to produce it for you free of charge)
In the event of a bankruptcy, they may ask you to provide even more details, such as whether or not you have previously been bankrupt, if you have acquired new debt after your decision to file for bankruptcy, contracts, etc.
You Will Get the Help You Need
Whatever financial situation you find yourself in, you can rest assured that you will definitely get the help you need. Your Trustee will walk your through all of your debt relief options, after which you will get to decide which choice is best for you. Whatever you choose, your Licensed Insolvency Trustee will guide you through the entire process.