In Canada, both bailiffs and licensed insolvency trustees play important roles in the legal and financial landscape. However, their roles and responsibilities differ significantly. Here’s an overview of what you need to know.
Bailiff vs. licensed insolvency trustee
A bailiff is a law enforcement officer responsible for executing and enforcing court orders and judgments. They’re often directly involved in debt collection. For example, bailiffs are hired to physically serve documents, seize or repossess property and evict tenants. In Quebec, a bailiff must be a member of the Chambre des Huissiers de justice du Quebec. Typically employed by federal, provincial, territorial and municipal courts, they may also be hired by creditors.
A licensed insolvency trustee (LIT) provides debt relief services and administers insolvency proceedings. LITs are licensed by the Office of the Superintendent of Bankruptcy Canada (OSB) and governed by the Bankruptcy and Insolvency Act (BIA). Their main duty is to assist individuals and businesses in financial difficulty by evaluating their financial situation, exploring debt management options, negotiating with creditors, administering bankruptcy estates and distributing assets to creditors.
In short, bailiffs enforce court orders while licensed insolvency trustees specialize in debt resolution, financial counselling and formal insolvency proceedings.
What debt relief options can a licensed insolvency trustee provide?
If you’re struggling with insurmountable debt, meeting with a bankruptcy trustee in Ottawa can help you determine the best course of action. Here’s a look at your debt relief options:
Debt consolidation. Debt consolidation involves combining multiple debts into a single loan. The goal is to simplify your debt payments by having only one monthly payment. This can help streamline your finances and potentially reduce your overall interest costs.
Consumer proposal. Filing a consumer proposal allows you to negotiate with your creditors to repay a portion of your debts over an extended period, usually up to five years. A consumer proposal provides debt relief while avoiding bankruptcy, enabling you to keep your assets and make manageable monthly payments.
Bankruptcy. When you declare bankruptcy, some of your assets are sold to repay creditors. You may also have certain debts discharged, relieving you of any legal obligation to repay them. Although bankruptcy provides a fresh start, it can have severe consequences. Consequently, it’s usually only used as a last resort when other debt relief options aren’t viable.
Whether you have business or personal debt, a licensed insolvency trustee from Bernier & Associates will sit down with you to go over your options and decide which debt relief solution makes the most sense for you.
Licensed insolvency trustee in Ottawa
At Bernier & Associates, our licensed insolvency trustees have years of experience helping individuals and businesses regain financial stability by developing personalized debt repayment plans. If you have insurmountable debt and are looking for a way out, we can help. Schedule an appointment today.