As of April 1 2016, The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) and its members have a new Directive. Licensed Insolvency Trustee, (LIT) is to replace Trustee in Bankruptcy for all Trustee advertisings.
Reason for the Name Change
The name change to Licensed Insolvency Trustee is designed to help better reflect the scope of services that Trustees offer to their clients and businesses that are experiencing financial hardship.
This name change is to help the public to more easily distinguish licensed Trustees from any unlicensed service providers and to help Canadians to clearly differentiate from the different services that are offered by the Trustees.
The new Licensed Insolvency Trustees designation helps consumers to realize that Trustees offer more than just Bankruptcy, as their service offerings also include credit counselling, consumer proposals and corporate proposals (including div1).
Nearly one quarter of Canadians either know of someone or have themselves used a bankruptcy service (according to a recent Ipsos Reid poll conducted on behalf of CAIRP). This same survey indicated that 60 percent mistakenly thought that debt settlement and credit counselling agency employees were provincially/federally licensed debt-relief professionals.
Better Informed Decisions for its Clients
Businesses and consumers will now be able to make better informed decisions, with the clear designation Licensed Insolvency Trustee, aside from other non-licensed services. The role of a Licensed Insolvency Trustee is to help provide all of the available options to the consumer or business and help them find the best possible solution for them.
This new Directive went into effect April 1, 2016. Trustees will have 12-months to convert all advertising to comply with the OSB directive.