The consumer proposal administrator (your LIT) prepares the legal documents, files the proposal with the Government of Canada, communicates with your creditors, collects your payments, provides counselling, and issues your Certificate of Full Performance once completed. Debt consultants are not administrators and cannot file a proposal.

What Is a Consumer Proposal Administrator?

A Consumer Proposal Administrator is the federally licensed professional who manages your consumer proposal from start to finish. In Canada, this role is performed exclusively by a Licensed Insolvency Trustee (LIT), a professional licensed and regulated by the Office of the Superintendent of Bankruptcy (OSB).

The administrator ensures that the proposal meets legal standards, protects both the debtor and the creditors, and is administered completely and accurately.

See similar explanations from trusted Canadian sources:

• The Role of the Consumer Proposal Administrator – Hoyes Michalos
• What Is a Consumer Proposal Administrator? – Consumer-Proposals.org

Key Responsibilities of a Consumer Proposal Administrator

Your administrator (LIT) is responsible for guiding you through every step of the process. Duties include:

• Conducting your initial assessment and explaining all your debt relief options.
• Preparing legal documents including your Statement of Affairs and the proposal itself.
• Filing your consumer proposal with the OSB, triggering the stay of proceedings.
• Communicating with your creditors and handling creditor voting.
• Collecting monthly proposal payments and distributing funds to creditors.
• Providing mandatory financial counselling sessions.
• Monitoring compliance and ensuring you meet your obligations.
• Issuing the Certificate of Full Performance upon completion.

For an official government description of this role, review Canada’s Form 48: Report of Administrator on Consumer Proposal (OSB).

Why Only a Licensed Insolvency Trustee Can Be the Administrator

Under the Bankruptcy and Insolvency Act, only a Licensed Insolvency Trustee can act as a consumer proposal administrator. Debt settlement companies, credit counsellors, or advisors cannot file a consumer proposal.

LITs are federally regulated, required to follow strict ethical and legal standards, carry bonding, and undergo continuous professional training. This ensures your proposal is legally compliant and properly managed.

Learn more: Licensed Insolvency Trustee in Canada

How to Choose a Consumer Proposal Administrator in Canada

When choosing the administrator (LIT) who will file and manage your proposal, consider the following:

• Are they a federally Licensed Insolvency Trustee? (Verify on OSB registry.)
• Do they offer a transparent explanation of costs?
• Is the consultation free, with no pressure?
• Do they clearly explain alternatives?
• Do they have strong reviews and a long-standing reputation?

To begin, speak with one of our LITs here: Book a Free Consultation

Costs & Fees Related to the Administrator’s Role

Consumers do not pay the administrator separately. Instead, the LIT’s fees are built into your monthly proposal payment. They are set by federal legislation and come out of the amount you offer your creditors.

To learn how fees work in detail, read: How Much Does a Consumer Proposal Cost?

Warning: Avoid Unlicensed Debt Consultants

Many Canadians are misled by debt consultants who:

• Charge high upfront fees
• Are not licensed or regulated
• Cannot file a consumer proposal
• Often refer you to a LIT anyway (after charging you)

Only work with a Licensed Insolvency Trustee. Their fees are regulated and already included in your proposal—you never pay extra.