Trustee vs Lawyer

When you’re buried in debt, it’s tough to know who to turn to first. Should you talk to a Licensed Insolvency Trustee (LIT) or a bankruptcy lawyer? Both can help, but they actually do very different things.

Knowing who does what can help you make the right choice for getting back on track financially. Here’s a look at what each professional offers so you can find the support that fits your situation best.

Key Points

1. What does a Licensed Insolvency Trustee do?
2. What about a bankruptcy lawyer?
3. Why start with a Licensed Insolvency Trustee?
4. Ready to take the first step?

What does a Licensed Insolvency Trustee do?

A Licensed Insolvency Trustee (formerly called a Trustee in Bankruptcy) is a federally licensed debt professional who handles all kinds of debt relief options. Unlike a lawyer, an LIT can offer complete solutions for personal and business financial issues—they’re the only ones who can legally file for bankruptcy or set up a consumer proposal.

Here’s what an LIT can do to help:

1. Assess your financial situation: In your first meeting, our LITs will take a close look at your income, expenses, assets, and debts to get a full picture of your finances. This way, you’ll know which debt relief options might work best for you.
2. Provide financial counseling: If bankruptcy doesn’t feel like the right fit, an LIT can help you consider other choices, like a consumer proposal—where you pay back a portion of your debt in manageable monthly payments.
3. Verify creditor’s claims: An LIT reviews the claims from your creditors to make sure that only legitimate debts are counted. This protects you from paying any claims that aren’t fully backed up.
4. Handle the entire bankruptcy process (if needed): If bankruptcy turns out to be the best option, your LIT will manage the whole process for you, including:
   • Notifying creditors: So you no longer have to deal with collection calls or letters.
   • Preparing and filing paperwork: Your LIT takes care of all the forms and filings, making sure everything is done right.
   • Managing and distributing assets: Any assets involved are handled according to Canadian law, so you can feel secure knowing the process is in good hands.

What about a bankruptcy lawyer?

Bankruptcy lawyers can support some debt-related issues, but their role is different from that of an LIT. In Ontario, only a Licensed Insolvency Trustee can file a personal or business bankruptcy or a consumer proposal, so a lawyer can’t provide a full debt relief solution. Bankruptcy lawyers are typically needed in more complex cases, such as:

• Legal disputes: If you’re dealing with disputed debts, a lawyer can provide legal advice on defending yourself.
• Court orders or complex situations: For more complicated cases, like disputes over property ownership or corporate bankruptcies, a lawyer can help sort out legal issues that go beyond the scope of an LIT.

For most personal debt problems, an LIT is fully equipped to handle everything you need to resolve your debt. Starting with an LIT can often be a simpler and more affordable choice—they’ll walk you through all the options, including alternatives to bankruptcy that might be a better fit.

Why start with a Licensed Insolvency Trustee?

Starting with a Licensed Insolvency Trustee makes sense because they provide a full range of services to help you manage or eliminate your debt. At Harris & Partners Inc., our LITs are dedicated to finding the best debt solution for your specific situation. Whether it’s weighing up options like a consumer proposal or guiding you through a bankruptcy filing, we’re here to support you every step of the way.

When you meet with one of our Licensed Insolvency Trustees, your initial consultation is completely free. During this confidential conversation, we’ll take the time to understand your concerns, answer your questions, and outline your options. Our goal is to help you regain financial stability as smoothly as possible.

Ready to take the first step?

If you’re struggling with debt, don’t wait to get the help you need. Reaching out to a Licensed Insolvency Trustee is the perfect first step that can ease your stress and set you on the path to a brighter financial future.

Contact Harris & Partners Inc. today at 905-479-5712 to schedule your free consultation, or visit one of our convenient offices in Markham, Barrie, Brantford, Hamilton, Kitchener, Oshawa, Pickering, St. Catharines, Brampton, Toronto, or North York. Our experienced team is here to answer your questions and help you take back control of your finances.