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?

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
Federally licensed
Federally regulated
Experience and education assessed by the government
Regulated fees
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.

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