Licensed Insolvency Trustee in Quebec

Understanding the Role of a Licensed Insolvency Trustee in
Quebec For Finding the Right Debt Relief Solution

If you’re struggling with mounting debts in Quebec, seeking the assistance of a Licensed Insolvency Trustee (LIT) could be the best decision you make. These professionals, previously known as Bankruptcy Trustees, have over 50 years of experience in resolving financial issues and helping people regain their financial footing.

Who is a Licensed Insolvency Trustee?

An LIT is a professional certified by the Office of the Superintendent of Bankruptcy Canada (OSB). These professionals were formerly known as trustees in bankruptcy, but in April 2016, the OSB issued a directive necessitating the use of the designation ‘Licensed Insolvency Trustee’ to better depict the range of services they offer.

What Services Do They Offer?

An LIT, unlike other financial advisors or credit counselors, provides a variety of services as mandated by the Bankruptcy and Insolvency Act (BIA). Their unique position as an Officer of the Court allows them to legally administer insolvency procedures as regulated under the BIA. Specifically, LITs are licensed to manage and supervise consumer proposals and bankruptcies.

When you decide to file for bankruptcy or make a proposal, an LIT will guide you through the process, prepare and file the necessary paperwork, and interact with your creditors on your behalf.

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How Much Does It Cost?

The fees for an LIT’s services are regulated and standardized by the Federal Government under the BIA. Additionally, there are government fees associated with filing these applications.

Fees for Consumer Proposals

According to the BIA, the fees and expenses of a consumer proposal administrator are as follows:

  • $750 payable upon filing a copy of the consumer proposal.
  • $750 payable upon the Court’s approval of the consumer proposal.
  • 20% of the money distributed to creditors under the consumer proposal.
  • Fees for filing a consumer proposal ($100).
  • Costs of counseling sessions.
  • Fee payable to the registrar.
  • Applicable federal and provincial taxes for goods and services.

For instance, if a debtor proposes to pay creditors $30,000, and if this proposal is accepted, the LIT will take $6,000 as part of their fee.

Fees for Bankruptcy

The cost of declaring bankruptcy depends on several factors such as monthly income, assets owned, and a minimum payable amount. The base cost of filing for bankruptcy is $1,800. However, if your earnings are above a specific limit set by the government, you’re obliged to contribute half of your income, termed as surplus income, into your bankruptcy estate.

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How to Become an LIT?

To become an LIT, an individual must be licensed by the OSB. The individual has to successfully complete the Chartered Insolvency and Restructuring Professional Qualification Program (CIRP), which is administered by the Canadian Association of Insolvency and Restructuring Professionals (CAIRP).

To apply for an LIT license, you need to:

  • Have good character and reputation.
  • Be solvent
  • Pass the CIRP Qualification Program, National Insolvency Exam, and the Insolvency Counsellor’s Qualification Course.
  • Pass an Oral Board of Examination.
  • Acquire a minimum of 2,400 hours of relevant insolvency experience.

Code of Ethics for Trustees

LITs must also adhere to the Code of Ethics for Trustees found in the BIA. This code governs the information that LITs must provide to creditors, the treatment of funds entrusted to LITs, conflicts of interest, and other related matters.

Making a Complaint Against an LIT

If you have any complaints against your LIT, you can contact the OSB. The OSB will investigate complaints against LITs for issues such as failure to provide required notices or mishandling of trust funds. Complaints concerning the Code of Ethics for Trustees are also handled by the OSB.

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Final Thoughts

When faced with financial difficulties, remember that you have several options to consider before filing for bankruptcy. By choosing a Licensed Insolvency Trustee in Quebec, you are taking a step towards resolving your financial issues. These professionals can assist you in finding the best solution to your financial problems, whether it’s filing for bankruptcy, consolidating your credit, or proposing a consumer proposal.

You should consider professional help if you’re living beyond your means, managing your money poorly, don’t know how to budget, or running out of time with your creditors. A Licensed Insolvency Trustee in Quebec is your best bet to get the help you need.

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During our initial meeting, they took the time to understand my debt and financial circumstances. They explained the various options available to me and helped create a personalized plan that would be most beneficial for my situation. With their assistance, I was able to avoid declaring bankruptcy by presenting a consumer proposal to my creditors. Fortunately, my proposal was accepted, and I am extremely relieved to finally be free of debt, all thanks to BankruptcyCanada. The burden on my shoulders feels significantly lighter now, and I truly believe that Bankruptcy Canada has the most skilled specialists in debt relief.

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