The Office of the Superintendent of Bankruptcy Canada has recently issued a new directive changing the designation of a bankruptcy trustee, or “Trustee in Bankruptcy” to Licensed Insolvency Trustee (LIT). This designation will help individuals struggling with debt identify those who legitimately provide government programs such as Bankruptcy or a Consumer Proposal to eliminate debt from consultants who are not licensed by the federal government.
The designation of Licensed Insolvency Trustee instead of Bankruptcy Trustee is more indicative of the wider range of insolvency and debt restructuring services that these professionals provide. In other words, Trustees assist not only in filing bankruptcy but also consumer proposals and other debt restructuring services. The new designation may also help to alleviate the fear people may have in talking to a “bankruptcy” trustee and make it clearer to individuals that Licensed Insolvency Trustees can provide a variety of debt management solutions.
The role of a Licensed Insolvency Trustee remains unchanged. They will still:
- Meet with you, during a free initial consultation, to review your debts and your financial situation in order to help you find the best available debt solution. That may or may not include any type of insolvency proceeding under the Bankruptcy & Insolvency Act. The role of a Licensed Insolvency Trustee is still to help you consider all of your options.
- Collect information from you and prepare the necessary documents to be filed with the government, whether you are filing personal bankruptcy or a consumer proposal.
- Notify your creditors, accept and review all claims, and otherwise administer the insolvency process.
- Ensure you complete all necessary duties and apply for your discharge or completion certificate.
It’s important to know that the person you work with is licensed and has the training and experience needed to help you get out of debt. Licensed Insolvency Trustees are just those experts.
Learn more about Grant Thornton’s Licensed Insolvency Trustees in Canada: