How to Restructure Debt: Who Can Help You With the Process ? 

Debt can cause a lot of stress, anxiety, and even panic. Working with certified professionals helps you handle your situation with more peace of mind. Licensed Insolvency Trustees are experts in managing debt. They listen to you, explain your options, and guide you through every step of the process.

Be careful not to trust people who claim to be experts but are not legally allowed to offer debt relief solutions. To overcome your financial problems, it’s essential to work with the right professionals.

How to Know Who Can Help You?

When your finances are concerned, it’s important to trust the right professionals. In Québec, only Licensed Insolvency Trustees (LITs) are certified to offer legal debt solutions. For informal debt restructuring, you can also get help from experienced advisors who specialize in reorganizing finances.

Licensed Insolvency Trustees vs. Financial Restructuring Advisors: What’s the Difference?

In general, debt restructuring can include a consumer proposal or bankruptcy. These are legal solutions under the Bankruptcy and Insolvency Act and are handled by a Licensed Insolvency Trustee. Only a LIT can legally file these cases with the Office of the Superintendent of Bankruptcy Canada (OSB).

For informal debt restructuring (solutions that do not hurt your credit history), you can work with a financial restructuring advisor. However, it’s important to choose your advisor carefully. In a trusted insolvency firm, advisors work closely with a Licensed Insolvency Trustee.

These advisors usually have a lot of experience with monthly budgets, debt management, and the laws and rules involved. They work under the supervision and authority of the LIT. Some private firms do not have a Licensed Insolvency Trustee and therefore cannot offer legal protection.

What Can a Debt Restructuring Advisor Help You With?

Financial restructuring advisors work in a qualified, supervised, and verified way under the guidance of a Licensed Insolvency Trustee. This ensures legal compliance and a high standard of service.

Here is what your advisor does for you:

• Comprehensive financial assessment: They review your existing debts, income, expenses, and assets to understand your situation clearly, including interest rates and minimum payment amounts.
• Finding the best solution: They explain all your options clearly, based on your goals, the law, and the type of debt restructuring that fits your situation.
• Creating a realistic budget: They help you make a budget you can follow, with a reasonable repayment term, to support your long-term financial health.
• Preparing documents: They ensure your file is complete and compliant with the requirements of the OSB.
• Ongoing support and follow-up: They guide and support you throughout every step of the process.

Working with an advisor from a Licensed Insolvency Trustee firm means you get daily expert help while also benefiting from the legal protection and authority of a LIT.

Why Consider Debt Restructuring?

If you are having trouble keeping up with your monthly payments or credit card balances, it’s better to act sooner rather than later. Money problems can get worse quickly, especially if you have high-interest personal loans, like some lines of credit. If you ignore them, your credit score could be seriously affected in the long term.

When debt-related pressure becomes overwhelming, seeking solutions to reduce your debt becomes essential. Debt restructuring can help you manage your debt and avoid more drastic actions that could hurt your credit report.

This method looks at your whole financial situation to find the main causes of your debt and create a clear repayment plan. It might include budget restructuring, debt consolidation, or talking to your creditors. After reviewing your situation, your advisor or LIT will give you a recovery plan with clear steps to restore your financial stability and pay down your debt.