Insolvency Counselling Program

Understanding the Insolvency Counselling Program

The Insolvency Counselling Program is a crucial aspect of the Bankruptcy and Insolvency Act that comes into play when an individual files a consumer proposal or personal bankruptcy. It involves a series of counselling sessions administered by a qualified insolvency counsellor, focusing on specific topics with defined timeframes.

Key Aspects of the Counselling Sessions

In the Insolvency Counselling Program, there are two main counselling sessions that a consumer debtor must undergo:


First Counselling: Conducted between ten and ninety days after filing a consumer proposal or personal bankruptcy.

Second Counselling: Conducted at least thirty (30) days following the first session.


The timeline for these sessions is critical. In personal bankruptcy cases, the second counselling must be completed before the discharge date. For consumer proposal cases, it must be completed before a certificate of full performance is issued.

An Overview of the First Counselling

The first counselling session, also known as the budgeting stage, happens at the onset of the insolvency process. It consists of both an online and an in-person segment.

Online Segment

The online segment includes an introduction and a budgeting module. The introduction provides information about the Insolvency Counselling Program and outlines the expectations. The budgeting module, on the other hand, helps you create a realistic and attainable personal budget.

In-Person Session

During the first in-person counselling session, the debtor and the counsellor discuss the personal budget. This discussion is crucial in forming a solid foundation for the debtor’s financial recovery.

An Overview of the Second Counselling

The second counselling, referred to as the planning for the future stage, focuses on post-insolvency financial goals, spending habits, and responsible use of credit. It comprises three online modules and one in-person session.

Online Modules

The online modules in the second counselling session are:


  • Setting and achieving financial goals module;
  • Spending habits module;
  • Responsible use of credit module.


These modules are important for post-insolvency success. They equip the debtor with the necessary tools and knowledge to stay financially healthy after being discharged or receiving a certificate of full performance.

In-Person Session

In the second in-person session, the consumer debtor and the counsellor review the debtor’s list of financial goals. These goals, along with the good budgeting skills developed during the first counselling, are designed to help the debtor maintain financial stability.


The Insolvency Counselling Program is more than just a statutory requirement. It’s a lifeline that aids consumer debtors on their journey towards financial recovery. By imparting crucial financial management skills, it helps prevent future financial distress and promotes responsible financial behavior.

Contact a qualified insolvency counsellor today to learn more about the Insolvency Counselling Program and embark on your path to financial recovery.

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