What is a Licensed Insolvency Trustee?

The Office of the Superintendent of Bankruptcy (OSB) and the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) recently issued a warning to alert the public to the risks associated with unregulated financial recovery services.

This warning is a reminder of the importance of consulting a licensed insolvency trustee, the only professional regulated by law to help you find a legal and secure solution to your debts. But what makes a trustee different, and why should you trust him or her when you're faced with debt?

Definition and role of the authorised insolvency trustee

A licensed insolvency practitioner (LIP) is a professional recognized and licensed by the federal Office of the Superintendent of Bankruptcy. Their role is strictly regulated by law and they must abide by a strict code of ethics. These regulations ensure that individuals and businesses in financial difficulty receive reliable, ethical and transparent assistance.

Unlike unregulated debt advisors, the insolvency trustee is the only professional legally authorized in Canada to administer a bankruptcy or consumer proposal. He or she acts as an official intermediary between you and your creditors, which :

• Immediately suspends legal recourse.

• End collection appeals and pressure.

• Allows a legal and supervised repayment plan.

But their role goes far beyond legal procedures. A true advisor on personal finances and recovery, the trustee analyses your situation as a whole and proposes the solutions best suited to your needs:

• Consumer proposal: reduced payments, interest-free, asset protection.

• Personal bankruptcy : last resort to start afresh.

• Debt consolidation or agreements with creditors.

• Reorganisation plan for companies in difficulty.

His aim is clear: to help you regain control and get a financial fresh start, whether you're an individual or an organisation struggling with debt.

Why choose a licensed insolvency trustee?

When a person or company is in debt, it can be tempting to turn to a "debt adviser" or an unregulated recovery firm. However, only the expertise of an insolvency trustee offers legal guarantees, complete transparency and real protection.

The difference between a trustee and a debt adviser

A debt advisor can give general advice or propose agreements, but he or she does not have the right to administer a bankruptcy or consumer proposal. A trustee, on the other hand, is the only professional legally authorized in Canada to manage these formal proceedings.

Legal framework, transparency and security

Unlike unregulated private services, the trustee acts within a strict legal framework overseen by the Office of the Superintendent of Bankruptcy. This ensures:

• Respect for the rules established by law.

• Total transparency in the treatment of debts.

• Effective protection against creditors (suspension of appeals).

Fees set by the federal government

With an unregulated advisor, fees can vary considerably and sometimes be abusive. A trustee's fees, on the other hand, are clearly established by the federal government, ensuring fair, predictable costs with no surprises for the debtor.

When should you consult a licensed insolvency trustee?

You should consider meeting with a licensed insolvency trustee if you are receiving incessant calls from creditors or if your debts are becoming too much to handle. A meeting with a trustee can help you review your legal options and reduce the immediate pressure.

Warning signs include an inability to pay your credit cards, personal loans or lines of credit. If your arrears accumulate, the trustee can help you negotiate a realistic plan that protects your essential assets.

For businesses, difficulties such as an inability to pay social security contributions or pay suppliers require rapid intervention. A trustee can propose recovery solutions to protect your business and your jobs.

Find peace of mind with an authorised trustee

Consulting a licensed insolvency trustee is a step towards regaining financial stability and putting an end to debt-related stress. Thanks to a legal framework and tailored solutions, you benefit from secure and transparent support.

At Mallette, our team of trustees and advisors can help you regain control of your finances. Whether through a consumer proposal, bankruptcy or other alternatives, we offer you humane and effective solutions for a true fresh start. Don't wait any longer to make an appointment and call 1-800-824-9099.