You’re in a difficult place. You know that you owe money on unpaid bills, loan payments, lines of credit, student loans, and maybe even more. You’re faced with the daily stress of trying to make ends meet and maintain your standard of living while providing for your family, but you have a cloud above your head. The dark cloud of overwhelming debt.
The thing is, we always struggle to see the light at the end of the tunnel when we are faced with a big problem. And being unable to meet debt obligations Is just about as big as those money problems can get. But insolvency is by no means a sentence to a life of financial strife without the possibility of long-term planning.
If anything, finally having to face your debt can change your perspective on your finances and even the world at large. But you don’t have to bounce back from debt on your own. In fact, you might need to get a bankruptcy trustee on your side in order to really turn the tables on debt. Not sure if you need a financial planner or a trustee in bankruptcy? Read on.
Licensed Insolvency Trustees
These professionals used to go by the title “bankruptcy trustee,” and they should be the first ones you visit when you’re faced with a debt problem. For starters, bankruptcy trustees are federally regulated professionals, which means that they are always up to date with the latest in bankruptcy and debt legislation.
The role of the bankruptcy trustee is to offer counselling and advice to those who are experiencing problems with debt. If you are being constantly called by collections agencies, if your wages are being garnished, or if you are facing legal ramifications to leaving your debt unpaid, these people are here to help.
Unlike bankruptcy trustees, financial planners lack the licensing to actually administer government regulated forms of debt relief. However, if your debt issue is not as bad as you thought, then maybe you don’t need to jump through all the hoops that come with bankruptcy or consumer proposals.
Financial planners most often charge hourly fees, which is another difference between them and the federally regulated bankruptcy trustees. If you’re not interested in long-term investing with a financial planner, then the chances are higher that they will charge you right away.
Still, the right financial planner is a valuable resource for someone who is trying to improve their relationship with money. Financial planners can guide you through setting up a budget and can help you come up with an accelerated debt repayment plan. They’re great for finding the best way to maximize a budget and reduce unnecessary spending.
You Need to Be Comfortable
No matter the type of financial professional you work with, it’s always important to have a good connection with the person who will be handling your money. Look for people who are empathetic, who take the time to get to know you, who are friendly, and who you can chat with comfortably — they’re the ones who are going to be able to give you the help you need. Good luck.