Trustee Name Change – A Bankruptcy Trustee is Now Called a Licensed Insolvency Trustees (LIT)
Trustee Name Change – This name change was made by the Office of the Superintendent Bankruptcy and took effect on April 1, 2016.
Permission was given for trustees to use this designation prior to April 1, 2016.
The OSB decided to make this change to provide a better understanding of the full range of debt relief options that a Trustee can provide.
A LIT (Licensed Insolvency Trustee) can provide a full range of insolvency options, and are not just for filing bankruptcy.
A Trustee can provide assistance with bankruptcy, debt counselling, filing a consumer proposal (in which case they are known as a “Licensed Consumer Proposal Administrator”), and other debt relief solutions.
The Office of the Superintendent Bankruptcy requires this change so the public knows that the trustee has a valid license issued by the Superintendent of Bankruptcy.
Trustees will have to identify themselves in all advertising as Licensed Insolvency Trustees.
Originally the Office of the Superintendent of Bankruptcy was considering using the designation “Licensed Trustee in Insolvency and Restructuring” or the acronym “LTIR”. Many trustees objected to this name as being awkward and confusing.