Canada Licensed Insolvency Trustee Guide

the Licensed Insolvency Trustees (LITs) in Canada. The Licensed Insolvency Trustee (LIT) is the "federally regulated professional" authorized to administer the "consumer proposals" and the "bankruptcies" under the "Bankruptcy and Insolvency Act" (the "BIA"). The initial consultation with the LIT is free (the "1-hour consultation" — the "no obligation assessment"). The LIT search tool is available on the "ic.gc.ca/osb" (the "Office of the Superintendent of Bankruptcy search"). The LIT fees are paid from the "proposal payments" or the "bankruptcy assets" — the "trustee does NOT charge the upfront fee". The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) is the "national association of the insolvency professionals". The LIT vs credit counsellor: the LIT is the "licensed professional who can file the consumer proposal and the bankruptcy" — the credit counsellor is the "non-profit advisor who can help with the budget and the debt management plan". The OSB complaint is filed with the "Office of the Superintendent of Bankruptcy" if the LIT engages in the "misconduct" or the "unprofessional behaviour".

What is a Licensed Insolvency Trustee?

Role and authority: The LIT is the "federally regulated professional" licensed by the "Superintendent of Bankruptcy Canada". The LIT administers the "consumer proposals" and the "bankruptcies" under the BIA. The LIT is the "trustee" who holds the "debtor's assets" in the "trust" for the "creditors".
Services: The "debt assessment" (the "review of the financial situation"), the "consumer proposal administration" (the "proposal preparation, the filing, the creditor vote, the completion"), the "bankruptcy administration" (the "asset liquidation, the surplus income calculation, the discharge"), the "financial counselling" (the "mandatory counselling sessions"), and the "debt consolidation advice".
Regulation: The LIT is regulated by the "Office of the Superintendent of Bankruptcy (OSB)" — the "federal regulator". The LIT must meet the "educational requirements" (the "CQP — the Chartered Insolvency and Restructuring Professional" — the "CAIRP membership").

Finding an LIT

OSB search tool: The "ic.gc.ca/app/osb/tds/search.html" — the "searchable list of the LITs in Canada". The search by the "city" or the "postal code". The results include the "name, the address, the phone number, and the email".
National LIT firms: The "MNP Debt" (the "MNP Ltd." — the "largest LIT firm in Canada" — the "200+ offices"). The "BDO Debt Solutions" (the "BDO Canada" — the "100+ offices"). The "Grant Thornton" (the "debt solutions division"). The "Deloitte" (the "insolvency services"). The "PricewaterhouseCoopers" (the "PwC insolvency").
Local LIT firms: The "local LIT" (the "independent trustee"). The "Sands & Associates" (the "BC and the Alberta"). The "Harris & Partners" (the "Ontario"). The "Britten & Company" (the "Alberta"). The "B. H. K. & Associates" (the "Ontario").

LIT Consultation & Fees

Initial consultation: The "free 1-hour consultation" — the "review of the debt" — the "assessment of the options" — the "discussion of the consumer proposal vs bankruptcy vs debt management plan". The consultation is the "no-obligation" (the "debtor does NOT have to file the proposal or the bankruptcy").
LIT fees (consumer proposal): The "trustee fee is paid from the proposal payments" — the "fee is included in the proposal amount". The typical fee is 15% to 25% of the payments (the "trustee's compensation" — the "regulatory approval required").
LIT fees (bankruptcy): The "trustee fee is paid from the bankruptcy assets" (the "non-exempt assets") or the "surplus income payments". The "upfront fee" is NOT required (the "trustee fee is deducted from the payments"). The typical fee is $1,500 to $3,000 (the "OSB tariff").

For the consumer proposal process, see our Consumer Proposal Guide →. For the bankruptcy process and the details, see our Bankruptcy Guide →.