Why Experience Matters More Than Firm Size When Choosing a Licensed Insolvency Trustee
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Q: Does it matter whether I work with a boutique insolvency firm or a large national LIT?
A: Yes — while every Licensed Insolvency Trustee (LIT) in Canada is federally licensed and regulated to the same standard, firm size and structure often determine who actually answers your questions. At a boutique firm, that's typically the trustee. At a larger firm, your file is often split across several departments, and the person you speak with day-to-day may have very little industry experience.
All LITs Are Licensed the Same Way — But Who You Talk To Is Not the Same
Both boutique and large insolvency firms are equally licensed by the Office of the Superintendent of Bankruptcy (OSB) and follow the same Bankruptcy and Insolvency Act (BIA) requirements. Many firms — boutique and large alike — now operate remotely or through multiple satellite offices, so physical location isn't the meaningful difference anymore.
The real difference is who picks up the phone.
How Larger Firms Are Often Structured
At many larger insolvency firms, your file is handled by several different specialized employees rather than one experienced person:
A payments department handles your monthly payment questions.
A separate counselling department delivers your mandatory financial counselling sessions.
A budgeting team reviews your income and expense forms.
An asset review team handles anything involving property, vehicles, or exemptions.
Each of these roles may be staffed by employees with a wide range of experience — including, in some cases, less than a year in the industry. You may find yourself re-explaining your situation to a different person depending on which part of the process you're asking about. This is one of the most common frustrations we hear from people who've previously dealt with a larger firm — having to repeat their story to a new person every time they call, because whoever answers the phone that day is different from the last.
A Common Example: Rigid Payment Structures
Here's a concrete example of how inexperience can shape the advice you receive. A consumer proposal is your offer to your creditors — negotiated and administered through your trustee, but ultimately shaped around your actual financial situation. The only firm legal requirement is that it be completed within five years.
Some larger firms default every client to the same template: equal monthly payments spread evenly across the full five years, regardless of that person's actual income pattern or circumstances. That's not a legal requirement — it's a process shortcut. A proposal can be structured with lump-sum payments, graduated payments, seasonal payments, or any structure that reasonably reflects your situation and is acceptable to your creditors, as long as it concludes within the five-year limit. When a firm defaults everyone to the same rigid template, it's often because customizing the structure takes more experience and judgment than following a standard form.
How a Boutique Firm Is Often Structured
At a boutique firm like D. Thode & Associates Inc., there's no separate payments department, counselling department, or asset team to route you through. When you call, you're speaking directly with a trustee or a senior team member who already knows your file — and who brings decades, not months, of hands-on experience to the conversation.
Questions Worth Asking Any Firm You're Considering
When I call with a question, who will I actually be speaking with?
How much industry experience does that person have?
Will I be routed between different departments depending on what I'm asking about, or does one experienced person handle my file from start to finish?
These aren't trick questions — any reputable insolvency firm should be able to answer them clearly and directly.
Frequently Asked Questions
Are all Licensed Insolvency Trustees equally qualified?
The trustee designation itself requires the same federal licensing regardless of firm size. What varies is who else at the firm you'll actually be interacting with day-to-day, and how much experience that person has.
Is a boutique firm more expensive than a larger one?
No — trustee fees for consumer proposals and bankruptcies are governed by the same federal tariff structure regardless of firm size, so cost isn't typically the differentiator.
Does firm size affect how my case is handled legally?
No. The legal process — filing requirements, creditor negotiations, court procedures — is the same under the BIA regardless of which licensed firm you choose. What differs is who you're working with day-to-day and how consistent that contact is.
Does my consumer proposal have to be equal monthly payments over 5 years?
No. A consumer proposal is your offer to your creditors, and its structure can be tailored to your actual circumstances — including lump-sum, graduated, or seasonal payments — as long as it's completed within the five-year legal maximum. Equal payments over the full five years is one option, not a requirement.
How do I know how much experience the person handling my file actually has?
Ask directly. A reputable firm should be able to tell you plainly how many years of industry experience the person you're speaking with has, and whether that person will stay with your file from start to finish.
Doug Thode is a CIRP and Licensed Insolvency Trustee at D. Thode & Associates Inc., serving Kelowna, the Central Okanagan, and all of British Columbia and Yukon since 2003. Every member of the D. Thode & Associates team brings over 20 years of industry experience — so when you call, you're speaking with someone who genuinely knows the process, not routed to a department.
Considering your options? Book a free, no-obligation consultation and speak directly with an experienced Licensed Insolvency Trustee. Call 1-866-712-5353 or visit outofdebt.ca
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