Do you want to help residents of Calgary who are in Financial Trouble? Consider becoming a bankruptcy trustee

A few years ago, John (name changed for privacy) walked into the offices of a bankruptcy trustee in calgary with a heavy weight on his shoulders. He was $87,000 in debt and, at the age of 30, he felt like he would never financially recover. He did some paperwork with a bankruptcy trustee and was told to come back in a few days. A couple more documents were signed, a couple personal finance sessions were given to him - and that was it! He asked the trustee, "Is that it? Am I out of debt?"

The bankruptcy trustee responded, "Yes, you're done. No more debt, just make sure your $250 payments clear until the $2,250 bankruptcy fee is paid."

As John explained to us, "Not only did I feel that I had a fresh start, but I thought, what a wonderful profession it is to be a bankruptcy trustee." [Officially known as a Licensed Insolvency Trustee

For transparency, John did skip over that he couldn't qualify for credit for 7 years and that meant no traditional credit cards or loans. John was wise, however in that he used 6 of those 7 years to go back to school to complete his education - the government did give John student loans which he paid off after graduation. Also, a few years later, John built his credit score back to 827/900 - so there was a happy ending to his ordeal.

Becoming a Licensed Insolvency Trustee (LIT) in Canada is both a rewarding and a challenging career path. It requires dedication, hard work and a strong interest in personal finance matters. The process for becoming an LIT can seem confusing, but with a clear understanding of the requirements and a plan to follow, it can be achieved.

This step-by-step guide will provide you with some of the information (for more complete and up-to-date information, visit https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/licensed-insolvency-trustees/how-become-licensed-insolvency-trustee) you need to become an LIT in Canada. It will outline the qualifications, the application process and the professional standards you will need to meet in order to become an LIT. With this guide, you will have the knowledge and tools to begin your journey toward becoming an LIT and making a difference in the lives of those dealing with financial difficulties.

Qualifications to Become an LIT

To become a LIT, you must first meet the qualifications set out by the Canadian Association of Insolvency and Restructuring Professionals or CAIRP. CAIRP sets the qualifications for LITs to ensure that only qualified individuals are licensed to provide financial services in insolvency. There are two sets of qualifications required to become a certified LIT. The first set of qualifications relate to the understanding of the insolvency process and the role of the LIT. This set of qualifications focuses on the knowledge required to adequately advise clients. The second set of qualifications relates to the ability to write and speak clearly and to provide accurate information. This set of qualifications focuses on the ability to avoid giving legal advice. Specifically, it focuses on the ability to provide accurate written financial advice for filing and other documentation as well as for judicial and administrative proceedings.

Application Process

The first step is to take the Chartered Insolvency and Restructuring Professional Qualifications Program. Next, and Oral Board of Examination, and finally, complete the Online Application for Trustee Licence.

Training and Professional Standards

To become a licensed insolvency trustee, you must complete a minimum of 120 hours of training. Between the hours required for training, you must complete the 30 hours of provincial and territorial Insolvency Law examination. The professional standards for LITs include the following aspects: Client care - Advising clients on the nature of their personal and financial situations, as well as the potential implications for those situations as a result of insolvency and bankruptcy. Documentation - Providing clients with accurate, written financial advice and ensuring that all documentation is filed and registered with the courts. Communication - Communicating clearly and accurately with clients, creditors, and other professionals involved in their financial situations.

Professional Liability Insurance

LITs are required to maintain professional liability insurance. Insolvency Law professionals must also have a Professional Indemnity Insurance policy in place. These insurance policies protect you from third-party lawsuits that may arise from your work as an LIT. There are a few ways to find a policy that will meet your needs. A good place to start is by speaking with your personal financial advisor or the insurance agent who works with your company’s financial services.

Course Requirements

In addition to completing the training and insurance requirements, you must also complete a full-time certificate program with a recognized course provider. There are a few recognized program providers in Canada including the following: The certificate program must be at least two years in length, and it must include a minimum of six hours of coursework in each of the following areas: insolvency law, dispute resolution techniques, and general financial services.

Exam and Certification

To complete your training and obtain your certificate, you must sit the provincial and territorial examination. The examination will be based on the material covered in your training, and it will be weighted to reflect the knowledge and abilities you acquired throughout the course. To pass the examination, you must obtain an average score of 70% or higher. Once you have completed your certificate program and passed the examination, you may apply for and be certified as a level 2 LIT. You will receive your designation after receiving a passing grade on the examination. Once certified, you may begin to provide services as an LIT.

Registration with the Superintendent of Bankruptcy

When you obtain your designation as a LIT, you must register with the Superintendent of Bankruptcy (Superintendent). The Superintendent of Bankruptcy is the government official responsible for overseeing the insolvency process. In registration with the Superintendent, you must provide your name, address, and business contact information. You must also provide a copy of your certificate and an affidavit attesting to your designation as a level 2 LIT. Once registered with the Superintendent, you may begin providing services to debtors on a temporary or permanent basis.

Continuing Education Requirements

To maintain your certificate and certification, you must complete 30 hours of approved continuing education each year. Continuing education can be fulfilled through a number of different ways. You may complete a course through a university or college course schedule, or you may choose to find self-study courses online.

Job Opportunities for Licensed Insolvency Trustees

LITs are often hired by law firms and other professional services companies. These companies often provide a complete package of services that includes financial planning, budgeting, estate management, and other forms of financial advice. In many cases, these companies will also provide accounting services.

Tips for Successful Career as an LIT

To become a LIT, you will need to demonstrate strong communication and legal skills (mostly in knowing that legal matters should be deferred to a lawyer). These two skills are essential in providing financial advice and deferring legal matters where appropriate, to individuals, families and businesses. Communication is essential to all professions, but especially in the financial services industry. Without clear communication with clients, often there is no way to understand their financial situation and come up with reasonable solutions. Finally, if you want to become a LIT, it is important to have a realistic view of the profession and the challenges that can come along with the job. Some of the most common challenges associated with the profession are dealing with difficult clients, the difficulty in finding work, and the lack of respect that can come from stubborn clients (not everyone will be as happy as John from our opening story). Having a realistic view of the profession will help you be as successful as possible.