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LITs are professionals authorized by the Federal Government to administer consumer proposals and bankruptcies.  LITs help people understand their financial options in deal with debts. Most LITs provide a consultation for free. 

An LIT deals directly with your creditors when you file a consumer proposal or a bankruptcy.   

If you want to learn more about what a LIT is or your options under the Bankruptcy and Insolvency Act, please contact us. answer to this item.

You should file an insolvency when you recognize you need help managing, dealing, and paying your debts.  

Examples include:

• too many creditors
• debt payments are more than 20% of your income
• lose of significant income for an extended period of time
• court fines or legal actions
• frozen bank accounts
• garnishment of wages 

Short answer: Depends

Long answer: Do you trust the person wanting to be in your corner? Are you benefiting from having them in your corner? 

Meeting with an LIT is free, however are fees are paid out of the money you pay into the insolvency process.  What an LIT charges is set by the legislation and we have no discretion to change these fees without court approval. 

A debt consultant or credit counsellor may charge you a fee to review your situation and then send you to a LIT.