Can a Licensed Insolvency Trustee access private mortgage debt?

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A Licensed Insolvency Trustee (LIT) can access most financial details during your debt assessment but needs your help to get information from private mortgage companies. You may have to prompt these lenders or authorize your LIT to request details. Keep a record of communications to ensure a clear financial picture for discussing options like consumer proposals. Documenting everything is crucial for determining the best way to manage your situation.

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Question

Can an LIT find out how much I owe from a private mortgage corporation? Hi, I owe money to a private mortgage corporation but they refuse to answer my emails and tell me how much I owe from them.

If I was to talk to an LIT would they be able to get this information from them for me so I can decide whether bankruptcy is worth it?

From: Anonymous Question, Unknown (UN)

Answer

An LIT can access essential financial details during debt assessments, but they can’t directly get information like the amount owed to a private mortgage company without your help. You might need to nudge the mortgage company to share this information or give your LIT a signed authorization to request it. Since private mortgage lenders operate differently from traditional banks, it’s vital to keep track of all your communications with them. This will help ensure that your overall financial picture is clear when discussing options like bankruptcy or consumer proposals with your LIT. Documenting everything will be crucial in figuring out the best way to handle your financial situation.

From: Insider Scott

OSB Based Answer

An LIT (Licensed Insolvency Trustee) has the authority to obtain financial information about your debts as part of their responsibilities under the Bankruptcy and Insolvency Act. Specifically, section 20(1) of the Act allows them to facilitate communication with creditors to gather necessary financial information. Therefore, if you consult with an LIT, they may be able to assist you in determining how much you owe to the private mortgage corporation.

From: This answer is provided by scanning the OSB Bankruptcy & Insolvency Act and related directives

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