You have finally decided that filing a voluntary assignment into bankruptcy is the only solution for you to eliminate your debts and move forward with a financial fresh start. The next important step is choosing a Licensed Insolvency Trustee (LIT). LITs, who are licensed by the Office of the Superintendent of Bankruptcy, are the only ones who can file a bankruptcy for you. We are all bound by the same legislation, the Bankruptcy and Insolvency Act, and the same professional conduct rules. The minimum fee, surplus income payment, or settlement on assets will be fairly similar amongst all trustees. You will be dealing with the LITs office for a period of nine months to a couple of years, so you want to ensure that you are comfortable with the LIT.

Here are a couple of tips to help you choose a LIT:

  • Confide in a close family member or friend that you are considering filing for bankruptcy and ask if they have any recommendations. We have many debtors that file bankruptcy that was referred by a family, friend, or co-worker.   Debt is a hard topic to share with others, but you may be relieved to find that others have experienced the same struggles.
  • Ask your accountant, lawyer, realtor, or mortgage broker for a referral
  • Inquire with your Employee Assistance Program if they have a referral
  • Do some research on the internet. Most LITs have websites with blogs, videos, and biographies which will allow you to gain some knowledge and feel a bit more comfortable walking into the trustee’s office.
  • Check the Office of the Superintendent’s website at (https://www.ic.gc.ca/app/scr/tds/web/?lang=eng) for a trustee in your area
  • Meet with the LIT in person. You do not have to file your bankruptcy with the first trustee that you see. If you do not feel comfortable, book an appointment to see another trustee. Most trustees do not charge a fee for the initial assessment to review your financial situation, explain your options, and the bankruptcy process.
  • Ensure the trustee’s office is returning your telephone calls. Your time is important.
  • Do not pay a fee to anyone to refer you to a trustee. You can contact the trustee directly to schedule an initial meeting.

Once you file a bankruptcy with a specific trustee, you can’t change trustees later. Take the time in advance to ensure you are dealing with a trustee that will treat you with compassion and understanding and respect your time. For further questions and inquiries contact us at Fresh Start Now at 1-888-287-2525

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)