As part of the consultation process, a 4 Pillars debt consultant in Victoria explores all options with clients to determine possible options to address debt relief. In some cases, consolidation loans, changing budgets, or other options may be available.
In some cases, the only recommendation a 4 Pillars debt consultant may be able to recommend is bankruptcy. All bankruptcies in Canada are managed by LITs or Licensed Insolvency Trustees. However, the debt consultants can discuss the process with clients and help them to understand the benefits of this process given their specific financial considerations.
The General Process
In general, bankruptcy for people in Victoria is considered only if all other possible ways to manage the debt are not an option. The LIT requires all financial information, including your assets, income, and all of your debt. While most debt can be discharged in bankruptcy, some types of debt will not be eligible in the process. The LIT will provide this information.
The Benefits of Bankruptcy
The debt consultant at 4 Pillars can review the benefits of this process. The first and most immediate benefit is that wage garnishments are ended once the LIT files for bankruptcy on your behalf. In addition, creditors and collection agencies should also stop making contact.
The LIT works directly with your creditors. It is no longer your responsibility to deal with any type of interaction with creditors. The LIT will also explain what assets you can keep in the process and how bankruptcy will impact your financial future.