ST THOMAS, ON—(Marketwired – April 05, 2016) – As of April 1, 2016, all trustees with a valid licensed issued by the Superintendent of Bankruptcy (OSB) are required to use the professional designation “Licensed Insolvency Trustee” (LIT). The objective of OSB Directive No.33, issued on December 2, 2015, is to make it easier for Canadians to recognise and identify professionals licensed by the OSB, so they can make informed decisions on how to restructure debt. According to John Adamson, Licensed Insolvency Trustee, Accountant (CMA), Chartered Insolvency and Restructuring Practitioner (CIRP), and owner of Adamson & Associates Inc. (www.adamsontrustee.com), the changes implemented by the OSB will help consumers and businesses in financial trouble find the qualified licensed professional that best suits their needs.
“Although initially the change in title from Trustee in Bankruptcy to Licensed Insolvency Trustee will cause some confusion for those familiar with the prior title, it is a welcomed change, and we see it as a step in the right direction,” says Adamson. “The word bankruptcy has a negative connotation and scares many people. Too often people seek help from unqualified, unlicensed people, only to be eventually referred to a trustee in bankruptcy. Sadly, many people are not aware that it's only a trustee in bankruptcy that can settle debts through a proposal. There are two types of proposals; consumer proposals are a highly effective tool for those people with unsecured debts of less than $250,000. We can usually negotiate a substantial reduction in the amount a person owes, and we can usually negotiate the repayment be interest–free, and the person is given up to five years to repay the negotiated amount,” states Adamson.
“In situations where a corporation or a person with more than $250,000 needs to settle their debts, a division one proposal will be offered by the trustee in bankruptcy. In both cases, it is the trustee that becomes involved to restructure the debt situation and thus helping the person to avoid bankruptcy. There are numerous other duties that trustees in bankruptcy execute. For example, only a trustee in bankruptcy can perform a receivership which is an option used by secured lenders to recover their loans, usually made to corporations. In addition, trustees perform various financial reviews for lenders, and in some instances, provide litigation support.Â
It, therefore, seems only appropriate that the title for the profession be changed from the archaic term trustee in bankruptcy to licensed insolvency trustee as it more accurately reflects the range of services we provide,” explains Adamson.Â
About Adamson & Associates Inc.: Working with a team of qualified professionals, John Adamson, a Licensed Insolvency Trustee (LIT), Chartered Insolvency and Restructuring Practitioner (CIRP), and accountant (CMA), assists individuals and businesses in financial distress. Serving Southwestern Ontario, Adamson & Associates Inc. offers personal and commercial bankruptcy services and credit counseling. As experienced and respected Ontario trustees, Adamson and Associates solve personal debt problems and assists businesses in debt. They also provide receivership liquidation services, business restructuring, and proposals. With offices in St. Thomas, Kitchener/Waterloo, London South, London North, Chatham, and Windsor, Adamson & Associates Inc. offers free consultations, evening and weekend appointments, and flexible fee payment arrangements. If you have any questions regarding bankruptcy or proposal matters, please contact Adamson & Associates Inc. at 519–310–JOHN (5646), or visit their website www.adamsontrustee.com.