Documents to bring and questions to ask before you choose between a consumer proposal, bankruptcy or another debt solution.
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Use this checklist before your first meeting with a Licensed Insolvency Trustee (LIT). LITs are the only professionals licensed by the federal Office of the Superintendent of Bankruptcy to administer consumer proposals and bankruptcies, and they must review your situation and alternatives before you file. The first consultation is typically free, but check when you book.
How to use it. Tick each item as you gather it. The more complete your income, debt and asset picture, the more precise the trustee's comparison of options will be. Bring documents for your household, not just yourself: surplus income in a bankruptcy is calculated on household income.
Example. A borrower with $46,000 of unsecured debt, a car loan and a small RRSP brings pay stubs, card statements, the car loan statement, a CRA notice of assessment and RRSP statements. The trustee can then estimate what creditors would get in a bankruptcy (the benchmark a proposal has to beat), whether surplus income would apply, and whether RRSP contributions made in the last 12 months would be exposed.
Limits. A checklist cannot tell you which option is right; the meeting can. Read the first meeting guide for what to expect.
Pitfalls, Failed Plans and Official Sources
Common mistakes with consumer proposals, bankruptcy and debt help in Canada, illustrative failure cases, and the federal and provincial official sources to verify rules.
Options, Costs and 2026 Rules
Which debts a Canadian bankruptcy or consumer proposal does not release under BIA s. 178, how the student loan 7-year rule and 5-year hardship relief work, and secured debts.
Options, Costs and 2026 Rules
How exempt property works in a Canadian bankruptcy, the BIA RRSP rule, Ontario's 2026 exemption amounts and how other provinces and Quebec differ.
Calculations and Checklists
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.
Calculations and Checklists
The two insolvency counselling sessions required in Canada, what they cover and cost, plus the duties of a bankrupt and of a consumer debtor, month by month.
Pitfalls, Failed Plans and Official Sources
How Quebec's voluntary deposit works under the Code of Civil Procedure, how it compares with a consumer proposal or bankruptcy, and other Quebec specifics for debt relief.
