Citizens in need of debt assistance should have every opportunity to speak with licensed insolvency trustees

Bromwich+Smith responds to Canadian Lenders Association's Truth in Advertising for Insolvency Trustees release

CALGARY, AB, June 4, 2020 /CNW/ - Bromwich+Smith believes every citizen in need of debt assistance has the right to speak with a licensed insolvency trustee about all of their options. This statement comes as a response to the Canadian Lenders Association's (CLA) press release issued on May 25, 2020 titled: Truth in Advertising for Insolvency Trustees.

In the release, the CLA appeals to the government to direct Licensed Insolvency Trustees (LITs) to instruct consumers unable to pay their monthly fees to first contact their creditor to reach a solution before taking steps in the trustee environment.

"It took courage for the CLA to publish their article to start this conversation publicly and it seems to me that the issue that the CLA is trying to address is that of education of our citizens regarding their right to restructure under insolvency law," said Shawn Stack, Vice President at Bromwich+Smith. "However, we strongly disagree that a person should be refused information on their legal rights to pay back debts."

Canada's jobless rate soared to 13 per cent in April. As of June 1, the government had processed more than 15 million applications for CERB, including more than eight million unique applicants, and paid out more than $42 billion in benefits.

In Canada, citizens have the right to declare bankruptcy however, they need to earn the right to a discharge. They also have the right to maintain assets for their current and future needs. Every citizen also has the right to declare bankruptcy and restart when they are ready. But more and more Canadian citizens are filing consumer proposals which are a compromise with creditors who favor this solution over filing a bankruptcy.

Bromwich+Smith believes every citizen seeking debt relief should be able to access all the information and speak with a Licensed Insolvency Trustee who is knowledgeable and can help them make an informed decision about their rights.

If there is an opportunity for The Canadian Lenders Association to reconsider their stance on this issue, Bromwich+Smith would be happy to work with them on doing so.

About Bromwich+Smith
Licenced Insolvency Trustees, Bromwich+Smith have debt relief specialists available to offer debt advice and debt restructuring entirely from the comfort of your own home. The first in the industry to offer video appointments with clients, Bromwich+Smith's Debt Relief Specialists are available for an initial consultation by phone at 1-855-884-9243 or via www.bromwichandsmith.com.

SOURCE Bromwich+Smith