You have debt. Lots of debt. So much debt that the bills are starting to flow off the edges of your kitchen table and blanket the floor. You also have a house, a car, a nice pension for when you (hopefully, eventually) retire. So how can you deal with all of this growing debt AND hold on to those things you’ve worked so hard to obtain?
The first step in getting out of debt is to take action. That means a call or email to a Licensed Insolvency Trustee to arrange a free debt relief consultation. During that confidential, face-to-face meeting you will be asked a series of questions about the size and type of your debt load, how much income your household earns, and what kinds of assets you own. If those assets have any value to them, above and beyond any secured mortgages or loans (including, for example, a car loan or RRSP loan), then the Insolvency Trustee will calculate a value for each and then discuss the various options available to you.
Protecting your assets
Asset Valuation is one of the most important parts of the consultation process, and without full disclosure to the Insolvency Trustee, he or she cannot provide you with a proper appraisal of your total financial situation (a financial snapshot, if you will).
So when you meet with an Insolvency Trustee to review your financial situation, it’s essential that you provide information about all of your assets. Full disclosure of all your financial holdings is essential to ensuring not only that the Insolvency Trustee is able to understand the complete picture of your financial situation, but also that he or she can then advise you on the very best ways for you to protect those assets.
Different assets must be dealt with in different ways. For example, you may have a sizable RRSP investment account that you are desperate to hold onto (retirement planning is not only wise, it’s essential these days!). By providing the Insolvency Trustee with up to date RRSP documents, he can advise you of which portion of your RRSP will be protected and whether any of your contributions are vulnerable (any contributions made within the past 12 months would become part of a Bankruptcy filing or a Consumer Proposal, for example).
The same logic would apply to your matrimonial home. By providing the Insolvency Trustee with up to date mortgage statements and a letter of opinion from a real estate agent outlining the current market value of your home, the Trustee can then quickly calculate whether the equity available in your home would be suitable for a Bankruptcy filing, a Consumer Proposal filing, or even an avoidance of those two options by a refinancing of the property instead.
Schedule your free debt relief consultation
Based on all of the information you provide, the Insolvency Trustee can then provide you with the correct advice for your specific situation BEFORE you sign anything.
If you feel your debt load is getting out of hand, and your money problems are beyond your ability to tackle them on your own, you’re going to need help dealing with your debt problems. That’s where an Insolvency Trustee can help. But before you attend your first meeting with him or her, start collecting all of the information you feel the Trustee would need to properly evaluate your financial situation.
If you’re unsure of what documents and information you need to put together, please give us a call toll-free at (844) 507-7526 anytime – we’d be happy to review the list of essential documents with you and set up a free consultation appointment for you.
Knowledge is power, and having essential information at your fingertips will give you, and your Trustee, the knowledge to advise you on the right path to take to financial freedom.