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What is a Licensed Insolvency Trustee?

Licensed Insolvency Trustees or LITs are government-regulated professionals authorized to administer federally regulated debt relief options for individuals who are facing financial difficulties. These options include bankruptcy and consumer proposals.

LITs must meet certain qualifications to obtain their license which includes:

  1. being of good character and reputation,

  2. being solvent,

  3. successfully completing the qualification program,

  4. passing the national insolvency exam,

  5. passing an oral board examination,

  6. passing the insolvency counsellors qualification course and

  7. obtaining a minimum of 2,400 hours of insolvency experience while they are in the program. 

 In addition, LITs adhere to strict government regulations and a code of ethics and are the only professionals who can file a consumer proposal or bankruptcy.

Only a LIT can file a Bankruptcy or Consumer Proposal – If you are speaking with other credit counsellors or debt advisors and they offer you Bankruptcy or Consumer Proposal Services – always ask if they are a LIT, if not, always call a LIT direct to avoid paying third party fees.

What does a Licensed Insolvency Trustee do?

LITs are qualified professionals who will provide advice and information on a full range of options that include bankruptcy and consumer proposals so that an individual who is facing financial difficulties can make an informed decision.

LITs are trusted professionals who are there to assess your situation and inform you of your options which include legislated options such as bankruptcy and consumer proposal or non-legislated options such as debt consolidation or credit counselling.  Your LIT will be there to assist you from start to finish through the process.

Once a consumer proposal or bankruptcy is filed, you will no longer have to deal with your creditors, your LIT will take over all communications.  Your unsecured creditors will no longer be able to continue or commence legal action or collection actions against you.  

Why you should use a LIT

It’s important to ensure that you receive financial assistance from an educated and trained professional.  A LIT has undergone extensive education and training in the field before receiving their license to practice from the Office of the Superintendent of Bankruptcy.  A LIT has the knowledge and training to assess your financial situation and provide you with advice on varied solutions to solve your debt problem.

For more information visit our FAQs page

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