What is a Licensed Insolvency Trustee?

With so many debt relief solutions out there, which one is the right one for you? If you are in debt, choose a Licensed Insolvency Trustee.

A Licensed Insolvency Trustee is tasked with helping you resolve your debts while protecting the rights of your creditors.

What is a Licensed Insolvency Trustee?

A Licensed Insolvency Trustee provides debt advice and services to Canadians with financial difficulties.

Ultimately, a trustee can help you resolve your debt problems, whether it’s credit card debt, defaulted loans, overdue taxes, student debt or something else.

A trustee is responsible for:

• Administering bankruptcies and consumer proposals.
• Protecting the rights of you and your creditors.
• Giving you the best possible financial advice.
• Helping you alleviate your debts.

Even business debts can be resolved.

The most important thing to know is that a trustee is the only person that can administer government debt relief programs, such as a consumer proposal or bankruptcy.

Not only that, but only a trustee can offer creditor protection that can halt wage garnishments and legal action against you.

It’s always recommended that you consult a trustee when looking for debt help because they are licensed and regulated by the Office of the Superintendent of Bankruptcy (OSB).

What does a Licensed Insolvency Trustee do?

Licensed Insolvency Trustees have the knowledge, experience and expertise to solve your debt issues and recommend solutions to your problems.

Through a trustee, you can freeze interest on your debts, stop collection action, stop wage garnishments and even reduce your debt under certain circumstances.

During an initial consultation, a trustee will review your situation, answer any questions you have and explain what you can do to alleviate your debts.

With so many debt relief programs available, it can be confusing. The good news is a trustee can simplify things and recommend the best option. They can advise on how to protect your assets and even offer guidance on budgeting, benefits, taxes and more.

If you decide to proceed with a consumer proposal or bankruptcy, a trustee will guide you through the process, help you complete the necessary forms and file paperwork.

Why do I need a Licensed Insolvency Trustee?

Under the Bankruptcy and Insolvency Act, only a Licensed Insolvency Trustee can administer insolvency proceedings that allow you to be discharged from your debt while also providing creditor protection.

The result is affordable debt help and advice from federally regulated, licensed professionals for all Canadian citizens.

All trustees are licensed and regulated by the Office of the Superintendent of Bankruptcy (OSB) and must adhere to standards of practice, including a code of ethics.

The OSB ensures that trustees:

• Have extensive knowledge and experience of insolvency before they obtain a license.
• Comply with legislation, regulations and directives.
• Undertake regular reviews, audits and inspections.
• Adhere to standards of practice, rules and the Code of Ethics for Trustees.
• Are subject to investigation and possible disciplinary proceedings if someone makes a valid complaint.

A trustee must be of good character, be solvent, and complete the following:

• The Chartered Insolvency and Restructuring Professional (CIRP) Qualification Program (CQP).
• The CIRP National Insolvency Exam.
• The Insolvency Counsellor’s Qualification Course or the Practical Course on Insolvency Counselling.

Trustees must also pass an Oral Board of Examination.

A trustee will never pressure you into any particular solution. Instead, they will offer impartial advice based on your circumstances, allowing you to make a decision based on that advice.

How do I appoint a Licensed Insolvency Trustee?

Using our network of knowledgeable and experienced trustee firms, we can connect you to a Licensed Insolvency Trustee in your area.

You can also browse the trustee registry if you want to do it yourself.

Be aware that some debt settlement companies try to charge large upfront fees just to refer you to a trustee. You don’t need to pay to speak to a Licensed Insolvency Trustee, and the initial consultation is free.

Licensed Insolvency Trustee fees

If you file a consumer proposal, a trustee’s fees are paid from your payments at no additional cost to you. In bankruptcy, the cost depends on your income, and the payment structure can vary. The federal government regulates the fees charged by trustees.

You make your payments directly to your trustee, with the fees collected from these payments before distribution to creditors.

Wrapping up

A Licensed Insolvency Trustee should be your first call when you need specialist debt advice.

They’re the only professionals that can administer insolvency proceedings such as a consumer proposal or bankruptcy.

A trustee can halt interest on your debts, end creditor action, stop wage garnishments and sometimes even reduce your debt.

If you have debts and don’t know which way to turn, seek free advice from a trustee, learn about the options and make choices that are right for you.

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