First meeting with a Licensed Insolvency Trustee: what to bring and what to ask
How to prepare for a first consultation with a Licensed Insolvency Trustee in Canada, how to verify the trustee, documents to bring, questions to ask and what happens next.
Before your first meeting with a Licensed Insolvency Trustee (LIT), confirm the person is licensed in the Office of the Superintendent of Bankruptcy's public trustee search, then bring income proof for your household, statements for every debt, your mortgage and car loan details, RRSP and TFSA statements, your latest CRA notice of assessment and a monthly budget. Ask the trustee to compare every option with you, including ones that do not involve filing, and to show what you would pay and what creditors would receive in a consumer proposal and in a bankruptcy. The first consultation is usually free and does not commit you to anything. Use the trustee meeting checklist to gather everything.
Part of the debt relief worked examples. General information, not legal advice.
Who you are meeting
Licensed Insolvency Trustees are licensed and supervised by the federal Superintendent of Bankruptcy under the Bankruptcy and Insolvency Act. They are the only professionals who can administer a consumer proposal or a bankruptcy. The title replaced "trustee in bankruptcy" on 1 April 2016 under OSB Directive No. 33, Trustee Designation and Advertising. In Quebec, the French title is syndic autorisé en insolvabilité.
Many websites that look like trustee firms are actually lead generators or debt consultants who pass your details to a trustee, sometimes after charging you. Before the meeting:
- Search the trustee's name in the OSB's "Find a Licensed Insolvency Trustee" tool, reached from the OSB homepage.
- Check that the meeting is with the LIT or their staff at a trustee office, not with a third-party "advisor".
- Do not pay anyone a fee for the referral.
See unlicensed debt consultants for the warning signs.
Documents to bring
| Category | What to bring | Why the trustee needs it |
|---|---|---|
| Identity | Photo ID; social insurance number | Required for filing |
| Income | Last 2–3 pay stubs for you and household contributors; benefits statements; self-employment records | Surplus income and affordability |
| Tax | Latest notice of assessment; any CRA balance letters | CRA debts and refunds |
| Unsecured debts | Card, line of credit, loan, payday loan statements; collection letters | Total debt, the $250,000 test, creditor list |
| Legal | Statements of claim, judgments, garnishment notices | Stay of proceedings and urgency |
| Secured debts | Mortgage statement, car loan or lease | Equity and secured creditor treatment |
| Assets | Home value estimate; vehicle details; RRSP, TFSA, RRIF, pension, bank and investment statements | Exemptions and the bankruptcy comparison |
| Expenses | Monthly budget; support orders; child care and medical costs | Non-discretionary expenses |
| History | Any large transfers, sales or repayments to family in the past five years | Preference and transfer-at-undervalue rules |
You do not need everything perfectly organized. A rough list is enough for a first meeting; the trustee will ask for the rest.
Questions to ask
About options
- What are all my options, including credit counselling, a debt management plan, Orderly Payment of Debts (if available in my province) or, in Quebec, a voluntary deposit?
- What would creditors receive if I went bankrupt? What would a proposal need to offer?
- Would I have surplus income in a bankruptcy, and how long would it last?
About assets
- Which of my assets are exempt in my province? What would I lose in a bankruptcy?
- What happens to my RRSP contributions from the last 12 months, and my TFSA?
- Can I keep my car if I keep paying the loan?
About debts
- Which debts would survive: support, fines, student loans, debts with a co-signer?
- What happens to joint debts with my partner?
About costs and process
- What will the fees be under the tariff, and how are they paid?
- How long until the stay of proceedings starts, and what happens to my wage garnishment?
- What are my duties, and what happens if I miss a payment? See counselling and duties.
What happens at and after the meeting
- Assessment. The trustee reviews your finances and must discuss your alternatives. Expect about an hour.
- Recommendation. You may receive a recommendation on the spot or after the trustee runs the numbers.
- Time to decide. You do not have to file at the first meeting. Take time if the situation is not urgent; if you face a garnishment or a court date, filing quickly may matter.
- Filing. For a proposal, the trustee prepares the proposal and statement of affairs and files them with the Official Receiver; for a bankruptcy, you sign an assignment. Filing is electronic.
- Stay of proceedings. Collection by unsecured creditors stops; see the stay.
Illustrative example: a well-prepared meeting
Priya brings her pay stubs, her partner's income, statements for $46,000 of unsecured debts, a car loan statement, a TFSA statement ($3,000) and an RRSP statement ($12,000, including $2,500 contributed seven months ago). The trustee calculates that in a bankruptcy her household would have about $300 of surplus income, she would lose the TFSA and the recent RRSP contribution, and creditors would receive roughly $5,000 after fees. A consumer proposal of $260 a month for 60 months would leave creditors about $10,930 after fees and the levy and let her keep everything. She takes a week to decide and files the proposal. The figures are hypothetical; see sizing a proposal.
What not to do before filing
- Do not borrow more or take cash advances to "use up" credit: it can lead to an opposed discharge or a creditor objecting to a proposal.
- Do not transfer assets to family or sell them below value.
- Do not repay a relative ahead of other creditors.
- Do not stop filing tax returns.
- Do not ignore court papers. Bring them to the trustee immediately.
Frequently asked questions
Does the first meeting cost anything?
Consultations with LITs are typically free. Confirm when booking. Fees for proposals and summary bankruptcies are set by the BIA General Rules and paid through the process.
Can I meet more than one trustee?
Yes. Meeting two trustees can help you compare advice and service. The fees for consumer proposals are capped by the same tariff, so differences are mostly about advice quality.
Will the meeting affect my credit score?
No. A consultation is not reported. Filing a proposal or bankruptcy is.
Can I meet a trustee by video?
Many trustees offer video or phone meetings, and documents can be sent electronically.
Sources
- Office of the Superintendent of Bankruptcy — Find a Licensed Insolvency Trustee; options you can trust
- Canadian Association of Insolvency and Restructuring Professionals — the professional association of trustees
- Justice Laws Website — BIA ss. 66.13 (administrator's duties) and 158 (duties of bankrupts)
