Do you need a debt consultant to file a consumer proposal or a bankruptcy?
No. Only a qualified Licensed Insolvency Trustee can provide access to federally regulated insolvency options such as bankruptcies and consumer proposals. It is against the law for a debt consultant to represent themselves as being able to provide access to these services.
What is the difference between a Licensed Insolvency Trustee and a debt consultant?
|Licensed Insolvency Trustee||Debt Consultant|
|Free first consultation||?|
|Can file a consumer proposal|
|Can file a bankruptcy|
|Experience and education assessed by the government|
|Formal complaint mechanism||?|
|Insolvency counselling at a low set rate delivered to federal standards|
Should you agree to pay fees to a debt consultant for advice on a consumer proposal or bankruptcy filing?
It is never necessary to pay fees to a debt consultant in order to access government-regulated insolvency options. Advice on a consumer proposal or bankruptcy is typically available for free from an LIT.
What if a debt consultant tells you their fee includes arranging for the services of a Licensed Insolvency Trustee?
The OSB recommends that you contact a Licensed Insolvency Trustee directly to avoid paying unnecessary fees.
How to report misrepresentation
To file a complaint about someone misrepresenting themselves as a Licensed Insolvency Trustee, please contact the OSB’s Service Centre at 1-877-376-9902.
- Date modified: