When you’re drowning in debt, it’s hard to know who to trust – or where to turn. You might be trying to budget your way out, avoid calls from creditors, or just get through one more month. But if your financial stress is taking a toll on your mental health, relationships, or quality of life, it could be time to talk to a Licensed Insolvency Trustee (LIT). In this article, we explore the signs it’s time to talk to a Licensed Insolvency Trustee.
At Spergel, we’ve helped over 100,000 Canadians find a fresh financial start through debt relief solutions tailored to their needs. Our Licensed Insolvency Trustees aren’t here to judge – we’re here to listen and help you understand all your options, not just the ones we administer.
“Many people think they need to hit rock bottom before asking for help, but the earlier you speak to a Licensed Insolvency Trustee, the more choices you have.”
— Colin Boulton, Licensed Insolvency Trustee, Spergel
As the only professionals in Canada legally authorized to administer consumer proposals and bankruptcies, Licensed Insolvency Trustees provide trusted, government-regulated advice – not high-pressure sales or one-size-fits-all solutions. Here are the signs it might be time to reach out:
1. You’re only making minimum payments on your credit cards
If you’re stuck making just the minimum payments on your credit cards or loans each month, you’re likely covering mostly interest. That means your actual debt balance is barely shrinking, if at all. Over time, this can trap you in a high-interest cycle where you’re paying hundreds – or even thousands – of dollars without making real progress.
This kind of financial limbo can be incredibly discouraging. It often signals that your current debt strategy isn’t sustainable – and it might be time to consider a structured solution. A Licensed Insolvency Trustee can help you understand your full range of options, including a consumer proposal – a legal debt settlement process that can reduce your total debt by up to 80%, stop interest, and let you repay what you can afford in monthly instalments. Unlike informal plans or loans, a consumer proposal is legally binding and offers immediate protection from creditors and collection calls via a stay of proceedings. At Spergel, we make sure you’re fully informed before making any decisions – and that starts with a free, no-obligation consultation.
2. Collection calls and creditor letters are becoming constant
Persistent calls, texts, and letters from collection agencies can cause significant stress and anxiety. More importantly, they often indicate that your creditors are escalating their efforts, possibly preparing to take legal action against you – such as wage garnishments, bank account freezes, or court proceedings.
Licensed Insolvency Trustees, as federally regulated professionals, can help protect you by filing a consumer proposal or bankruptcy. When you initiate either process through an LIT, an automatic legal stay of proceedings comes into effect. This stay immediately stops all collection efforts, including phone calls and legal actions, providing you with much-needed relief and a breathing space to regain control of your finances.
3. You’re using credit to pay for essentials
Are you relying on credit cards or high-interest loans to cover essential expenses like groceries or rent? This is a common sign of a debt spiral, where you’re using new debt just to keep up with existing obligations – a cycle that can quickly become unmanageable.
Licensed Insolvency Trustees have the expertise to review your full financial picture and recommend the best course of action. Whether that’s restructuring your debt through a consumer proposal or exploring other options, a LIT can help you regain control over your monthly budget and reduce financial stress.
4. You’ve been denied a debt consolidation loan
Many Canadians consider a debt consolidation loan as their first step toward managing debt. If, however, your credit score has already been affected or your income isn’t sufficient to support additional borrowing, qualifying for a new loan can be challenging or impossible.
A Licensed Insolvency Trustee can provide you with expert guidance on alternatives that don’t rely on new credit. One such option is a consumer proposal – a formal, legally binding agreement where you repay only a portion of your debts over time. This solution offers protection from creditors and can help you regain financial stability without taking on more debt.
5. Your mental health is suffering because of debt
According to our recent Debt Load and Mental Health study, nearly half of Canadians struggling with problem debt experience symptoms like difficulty sleeping, anxiety, or depression. Financial stress doesn’t just impact your wallet – it affects your overall well-being, including your work, relationships, and mental health.
Reaching out to a Licensed Insolvency Trustee can provide more than just financial solutions. A LIT offers expert guidance, clarity on your options, and the support you need to regain control of your finances and your life. Remember, you’re not alone – there is a path forward toward relief and peace of mind.
6. You’re being threatened with wage garnishment or lawsuits
If you’ve received a legal notice – like a statement of claim or a wage garnishment – act quickly. These are powerful tools creditors use to collect debts, and ignoring them can lead to serious consequences, including frozen bank accounts or deductions from your paycheque.
A Licensed Insolvency Trustee is the only professional in Canada legally authorized to stop these actions through a consumer proposal or bankruptcy filing. These federally legislated solutions trigger an automatic stay of proceedings, which immediately halts all collection activity, including lawsuits and wage garnishments.
7. You don’t know what your options are
Sometimes the clearest sign you need help isn’t a missed payment – it’s the constant anxiety, avoidance, or dread of opening your mail. If you’re feeling stuck, overwhelmed, or unsure what to do next, it’s time to talk to someone who can provide clarity and reassurance. A Licensed Insolvency Trustee is a federally regulated professional – and the safest, most trustworthy place to start. Your initial consultation is FREE, confidential, and pressure-free.
During your consultation, a LIT will:
- Review your full financial picture – including income, expenses, assets, and debts
- Explain all of your debt relief options (not just bankruptcy)
- Help you understand which solution best fits your situation and goals
You don’t have to figure it out alone – and you don’t have to keep living under financial stress.
What happens when you meet with a Licensed Insolvency Trustee?
If you’ve never met with a LIT before, you might not know what to expect. The first meeting is free, private, and focused entirely on helping you understand your situation. There’s no pressure to commit. Instead, your trustee will listen, ask questions, and help you see the full picture – what you owe, what’s realistic to repay, and what options are legally available to you. By the end of the conversation, most people feel genuine relief. They understand that debt help exists, and they don’t have to face it alone.
Signs it’s time to talk to a Licensed Insolvency Trustee: FAQs
Here are some of the most common questions we receive from those wondering about the signs it’s time to talk to a Licensed Insolvency Trustee:
How to choose a Licensed Insolvency Trustee?
All Licensed Insolvency Trustees in Canada are regulated by the federal government, which means they’re held to strict ethical and professional standards. That said, not every firm is the same – and choosing the right LIT can make a big difference in how supported you feel throughout the process.
Look for a LIT who:
- Takes time to understand your unique financial situation
- Explains all your options clearly and without pressure
- Has experience helping people in similar circumstances
- Offers flexibility, like virtual or in-person consultations
- Is transparent about the process, fees, and next steps
At Spergel, our team of experienced Licensed Insolvency Trustees is known for a compassionate, judgment-free approach. We’ve helped over 100,000 Canadians regain control of their finances, and we’re here to help you too – starting with a free, no-obligation consultation. Unlike other bankruptcy firms, you’re assigned your very own Licensed Insolvency Trustee to walk you through the entire debt relief process, instead of being passed from person to person.
What does a Licensed Insolvency Trustee do?
A Licensed Insolvency Trustee is a federally regulated debt professional who is legally authorized to administer consumer proposals and bankruptcies in Canada. But their role goes far beyond paperwork.
A LIT is your ally in understanding all of your debt relief options – not just the ones they offer. They will:
- Review your financial situation in detail
- Explain every available solution, from budgeting to legal options
- Help you make an informed decision based on your goals and circumstances
- Offer protection from creditors, including stopping wage garnishments and collection calls, if you file a legal solution
- Guide you through every step of the process with clarity and support
At Spergel, our Licensed Insolvency Trustees focus on personalized, non-judgmental guidance. We take the time to listen, explain, and empower you – so you can move forward with confidence.
When in doubt, reach out
If you’re feeling overwhelmed, uncertain, or simply stuck – know that help is available. You don’t need to have all the answers before speaking with a Licensed Insolvency Trustee. In fact, reaching out early can give you more time, more choices, and more control over your financial future.
At Spergel, our LITs take the time to listen, explain your full range of options, and guide you without judgment. With over 35 years of experience and more than 100,000 Canadians helped, we understand what you’re going through – and we know how to help.
Recognize any of these signs it’s time to talk to a Licensed Insolvency Trustee? Your first consultation is free and confidential. There’s no pressure, no obligation – just honest, expert advice to help you move forward. Talk to a Spergel Licensed Insolvency Trustee today, and take your first step toward peace of mind and a debt-free future.
