Who Can Become a Licensed Insolvency Trustee in Canada?
Licensed Insolvency Trustees (LITs) are federally regulated professionals authorized by the Office of the Superintendent of Bankruptcy (OSB) to administer bankruptcies and consumer proposals in Canada. They have a unique responsibility and dedication to preserving the sector’s credibility while providing a full range of debt relief solutions to Canadians under the Insolvency Act. Not just anyone can become a Licensed Insolvency Trustee. They must meet specific education, experience, and licensing requirements to ensure they have the expertise to handle your case.
When you’re considering filing for bankruptcy or a consumer proposal, you’ll need to select a trustworthy and reliable trustee to provide you with debt advice and guide you through the process. The government regulates the fees charged by LITs, so the cost remains consistent regardless of the LIT you choose. Most trustees even offer a free initial consultation to help you determine the best solution for your financial situation.
Education and Experience Requirements
To become a Licensed Insolvency Trustee in Canada, the following prerequisites must be met:
Canadian residency or practice
Possession of a recognized professional designation in the accounting or auditing field
Meeting the criteria for good character and solvency
These requirements ensure that the trustee is equipped to assist individuals facing debt problems. In addition, they must complete the Chartered Insolvency and Restructuring Professional (CIRP) Qualification Program (CQP). This program is designed to equip LITs with the expertise and experience they need to assist individuals and businesses with financial difficulties effectively.
In addition to the CIRP Qualification Program, aspiring LITs must complete the mandatory Insolvency Administration Course. The course broadens the understanding of insolvency administration for all LITs, enabling them to navigate the complex procedures of bankruptcy and consumer proposals proficiently.