If you’re struggling with debt, a meeting with a Licensed Insolvency Trustee is often the first step towards financial relief and long-term stability.
But what actually happens in that first consultation? Will it cost anything? What should you bring? And most importantly, what debt solutions will be on the table?
Many Canadians reach a point where credit cards, tax debts, and monthly bills feel impossible to manage—remember, you’re not alone, and you have options. This guide will walk you through exactly what to expect from your initial meeting with a Licensed Insolvency Trustee.
From preparing your financial information to understanding options like a consumer proposal or bankruptcy, we’ll break it down so that you know your rights, your choices, and your next steps.
Jump to:
- What can I expect if I book a consultation with a Licensed Insolvency Trustee?
- How do I prepare for a meeting with a Licensed Insolvency Trustee?
- How long does the first consultation with a Trustee last?
- What debt relief options will a LIT tell me about?
- How much does a Licensed Insolvency Trustee cost?
What can I expect if I book a consultation with a Licensed Insolvency Trustee?
The main aim of your first meeting with a Licensed Insolvency Trustee (LIT) is to:
- Identify the causes of your financial difficulties
- Take an objective look at your financial situation
- Answer any questions or worries you might have
- Give you an overview of your options
Your consultation is free and confidential
You won’t have to pay for your first meeting with a Licensed Insolvency Trustee. These consultations are free and completely confidential, giving you a safe space to talk through your financial challenges.
You can expect a respectful, understanding environment. LITs are federally regulated professionals—not collection agencies. Their role is to help, not to shame or pressure.
You’ll talk through your financial situation in detail
The trustee will ask questions to get a full picture of your finances. This includes your monthly income, expenses, unsecured debt (like credit cards and payday loans), tax debts, assets, and anything else that impacts your ability to repay what you owe.
It’s a practical conversation—not an interrogation. The more honest and detailed you are, the better the trustee can help.
You’ll learn about all available debt solutions
One of the biggest benefits of speaking with a Licensed Insolvency Trustee is getting access to all your options. Depending on your situation, this could include a consumer proposal, bankruptcy, or debt consolidation.
LITs are legally required to explain all of your options so that you can make a confident, informed decision.
There’s no pressure to decide on the spot
You won’t be forced into a decision during the consultation. If you’re not ready to move forward with a consumer proposal, bankruptcy, or any other debt solution, that’s okay.
Most trustees will give you time to think things through, gather documents, and ask follow-up questions before you choose a path forward.
You’ll leave with clear next steps
Whether you decide to proceed or not, you’ll walk away with a better understanding of your financial circumstances and a roadmap for your next move.
How do I prepare for a meeting with a Licensed Insolvency Trustee?
To prepare for a meeting with a Licensed Insolvency Trustee, there are a few things you can bring and keep in mind:
- Proof of income – recent pay stubs, benefit statements, or pension slips
- List of debts – credit cards, loans, payday lenders, tax debts, and who you owe
- Recent bills and expenses – rent, mortgage, utilities, insurance, etc.
- Asset details – car ownership, savings, investments, property info
- Tax returns or CRA correspondence – especially if you owe taxes
- Photo ID – government-issued, like a driver’s license or passport
- Your questions – jot down anything you’re unsure about
- Your goals – whether it’s stopping collection calls, avoiding bankruptcy, or rebuilding credit
If you don’t have everything on hand, that’s okay. The trustee will still help you understand your options and what to do next.
How long does the first consultation with a Trustee last?
Most first meetings with a Licensed Insolvency Trustee last between 30 minutes to an hour, depending on your situation. You can meet in person, by phone, or online—whatever works best for you. And remember, there’s no commitment during the consultation. Whether you need more time or want to move forward right away, the pace is up to you.
What debt relief options will a LIT tell me about?
Licensed Insolvency Trustees are legally required to walk you through all of your available debt relief options, not just the formal ones like bankruptcy. Here’s what they’ll typically explain:
Consumer proposal
A consumer proposal is a formal agreement to pay back part of your debt over time—usually with no added interest. You make fixed monthly payments to your trustee, who distributes them to your creditors.
Why it’s popular:
- You keep your assets (like your car or home)
- Stops interest and collection calls immediately
- Doesn’t involve declaring bankruptcy
- Repayment terms are based on what you can afford
Consumer proposals are legally binding and available to those with up to $250,000 in unsecured debt (excluding a mortgage on your principal residence).
Bankruptcy
If your debts are too overwhelming to repay—even with a reduced payment plan—personal bankruptcy may be the most realistic option.
What to expect:
- It’s a legal process that can discharge most unsecured debts
- You may need to make surplus income payments if you earn above a certain threshold
- Some assets may be exempt, depending on your province
- You’ll be required to attend two financial counselling sessions
Bankruptcy is always the last resort, and your trustee will only recommend it if no other solution makes sense for your situation.
Other debt solutions
If you don’t need (or want) to file a consumer proposal or bankruptcy, your trustee may suggest other forms of debt relief, such as:
- Debt consolidation—combining your debts into one lower-interest loan
- Credit counselling—budgeting help and informal repayment plans
- Negotiating directly with creditors
- Creating a custom budgeting plan to stay on top of payments
These aren’t always administered by the trustee directly, but they’ll help you explore every path before making a decision.
How much does a Licensed Insolvency Trustee cost?
The initial consultation with a Licensed Insolvency Trustee is completely free—you won’t pay anything to learn about your options.
If you move forward with a debt relief plan, the trustee’s fees are built into your monthly payments and are regulated by the federal government. You won’t receive a separate bill for their services.
LITs are the only professionals in Canada legally allowed to file a bankruptcy or consumer proposal, and their fees are tightly controlled under the Bankruptcy and Insolvency Act.
Take the first step towards financial relief
Meeting with a Licensed Insolvency Trustee isn’t about giving up—it’s about taking back control. Whether you’re dealing with credit card debt, tax arrears, or just can’t seem to get ahead each month, a confidential consultation can help you understand your rights, your options, and what debt relief could look like for you.
At Harris & Partners, we offer judgment-free support, clear advice, and tailored solutions that fit your financial situation—not a one-size-fits-all approach. From consumer proposals to budgeting help, our team is here to walk you through every option, every step of the way.
Ready to talk? Book a free consultation with a Licensed Insolvency Trustee at Harris & Partners today and take the first step toward a more stable financial future.
