- When performing the assessment, the LIT
shall be guided by the following principles:
(1) Debtor’s Choice: Upholding a standard of informed debtor choice following full disclosure to the debtor that the assessment may be completed in person or by videoconference, at the debtor’s choice;
(2) Privacy: Having adequate facilities and equipment to ensure the assessment process respects and maintains the privacy of the debtor; and
(3) No Third Party Influence: Only LITs, or those individuals delegated by LITs to perform the tasks stated in paragraph 12 of this Directive, are authorized to perform certain functions under the BIA, Rules and Directives.
- For the purpose of the assessment, the individual conducting the assessment, or the relevant portion of it, shall inquire about the debtor’s property and financial affairs and shall:
(1) prepare, on the basis of information obtained from the debtor, a complete
statement of the debtor’s financial affairs setting forth the following details;
(a) the debtor’s assets;
(b) the debtor’s liabilities;
(c) a detailed current monthly income and expense statement, including all income, gross and net, and all expenses, including special-needs expenses,
alimony, support or maintenance payments, transportation costs, and medical and prescription expenses; and
(d) transfers, preferences and settlements of real or personal property of the debtor;
(2) discuss with the debtor their views respecting their immediate problems, evaluate the extent and nature of the problems facing the debtor, and review
approaches for dealing with those problems;
(3) identify and discuss, in general, the options available to debtors for resolving financial difficulties, including a discussion of the rights and responsibilities of debtors and creditors under each of the following
options:
(a) non-legislative debt-settlement arrangements;
(b) an Orderly Payment of Debts under Part X of the Act, or similar option under provincial legislation, if applicable;
(c) a consumer proposal under Division II of Part III of the Act;
(d) a proposal under Division I of Part III of the Act; and
(e) an assignment in bankruptcy under section 49 of the Act; and
(4) explain the general meaning of the following credit and insolvency matters
if pertinent to the circumstances:
(a) garnishment;
(b) co-signers;
(c) credit rating;
(d) assets;
(e) legal action;
(f) payments;
(g) windfalls;
(h) tax returns;
(i) tax credits;
(j) mediation;
(k) the discharge process and types
of discharge orders; and
(l) debts that are statute-barred.
