How can a Licensed Insolvency Trustee help with my debt?

Personal debt has a way of popping up like weeds—one minute everything’s fine, and the next you’re wondering how things got so out of control. The good news is you don’t have to tackle the cleanup on your own. Licensed Insolvency Trustees are federally regulated, highly trained, and genuinely committed to helping people step out of debt and into a fresh financial start.

What’s a Licensed Insolvency Trustee?

A Licensed Insolvency Trustee (LIT) is a federally regulated debt professional authorized by the Government of Canada to help Canadians deal with debt through solutions like a consumer proposal or bankruptcy. LITs are the only professionals in Canada who can do this, thanks to years of training, examinations, and strict oversight.

Beyond the formal definition, an LIT is your guide to all things personal debt. They explain your options, understand the legal side of the process, and walk you through solutions designed to help—not overwhelm.

What makes a Licensed Insolvency Trustee different from a debt consultant or credit counsellor?

The debt relief landscape in Canada can feel crowded. Many people call themselves “debt experts,” but not all of them have the same authority or training. Unlike consultants or counsellors, LITs are the only debt professionals who can file a consumer proposal or bankruptcy on your behalf, negotiate legally binding agreements with creditors, and stop collection actions like wage garnishments and collections calls. They’re also the only debt professionals who offer free consultations—an industry standard for trustees—and that can step in when CRA debt is part of the problem.

How do trustees get paid?

The Office of the Superintendent of Bankruptcy (OSB) regulates LIT fees. This means there are no surprises, no hidden add‑ons, and no high-pressure tactics. In a consumer proposal or bankruptcy, the payments you make include the trustee fees, meaning you won’t receive a separate bill down the road. Even with these fees, you’ll still end up paying less than you initially owed.

Why should I talk to a Licensed Insolvency Trustee?

Talking to a trustee is one of the easiest ways to understand all your debt options. And because consultations are free, there’s no risk in asking questions. LITs are required by their code of ethics and regulations to give you the best recommendation for your situation, even if that means suggesting a non‑insolvency option. Understanding your choices can give you the confidence and clarity you need to move forward.

When should I talk to a Licensed Insolvency Trustee?

Many Canadians silently struggle with debt. Some are weighed down not only by what they owe, but the shame and perceived stigma associated with asking for help. But you don’t need to wait to hit your breaking point before asking for help. If you’re noticing early warning signs—like only making minimum payments, using credit to cover basic expenses, falling behind on bills, or feeling stressed about money—now is a great time to reach out.

What’s it like to meet with a Licensed Insolvency Trustee?

Meeting with a trustee doesn’t have to be scary—you’re talking to someone who is approachable and wants to understand what you’re dealing with, so they can help you move forward. During your first meeting, you’ll talk openly about your finances, ask questions, and learn whether bankruptcy, a consumer proposal, or another solution is right for you. There is no judgment—just clarity. Many people leave their first meeting feeling lighter and seeing a clear path forward to debt freedom.

Our article walks you through what it’s like to meet with an LIT.

How can I find a Licensed Insolvency Trustee in Canada?

You’re in the right place! At Grant Thornton Limited, we have 50+ years of experience in the industry, over one hundred thousand satisfied clients, and over 70 locations across Canada. We offer in-person and virtual (phone or video) appointments to help you reach debt freedom in whatever way works best for you.

You can book your free consultation easily through our website and start your journey today!