--- title: How can a Licensed Insolvency Trustee help with my debt? date: 2026-01-21T08:10:00-05:00 author: Frank Fabiano canonical_url: "https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-can-a-licensed-insolvency-trustee-help-with-my-debt" section: Articles --- [ Back to the hub ](https://grantthorntonlimited.ca/en/debt-help-resources/articles) # How can a Licensed Insolvency Trustee help with my debt? Frank Fabiano CPA, CIRP, Licensed Insolvency Trustee ![Two people sit at a table reviewing documents, engaged in discussion in a professional office.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleHero/51760/using-a-trustee-square.webp) Frank Fabiano CPA, CIRP, Licensed Insolvency Trustee Personal debt has a way of popping up like weeds—one minute everything’s fine, and the next you’re wondering how things got so out of control. The good news is you don’t have to tackle the cleanup on your own. Licensed Insolvency Trustees are federally regulated, highly trained, and genuinely committed to helping people step out of debt and into a fresh financial start. ## What’s a Licensed Insolvency Trustee? A Licensed Insolvency Trustee (LIT) is a federally regulated debt professional authorized by the Government of Canada to help Canadians deal with debt through solutions like a [consumer proposal](https://grantthorntonlimited.ca/en/consumer-proposal/what-is-a-consumer-proposal) or [bankruptcy](https://grantthorntonlimited.ca/en/bankruptcy/what-is-bankruptcy). LITs are the only professionals in Canada who can do this, thanks to years of training, examinations, and strict oversight. Beyond the formal definition, an LIT is your guide to all things personal debt. They explain your options, understand the legal side of the process, and walk you through solutions designed to help—not overwhelm. ## What makes a Licensed Insolvency Trustee different from a debt consultant or credit counsellor? The debt relief landscape in Canada can feel crowded. Many people call themselves “debt experts,” but not all of them have the same authority or training. Unlike consultants or counsellors, LITs are the only debt professionals who can file a consumer proposal or bankruptcy on your behalf, negotiate legally binding agreements with creditors, and stop collection actions like [wage garnishments](https://grantthorntonlimited.ca/en/debt-help-resources/articles/wage-garnishment-how-it-works-and-what-you-can-do) and [collections calls](https://grantthorntonlimited.ca/en/debt-help-resources/articles/stop-collection-calls-for-good). They’re also the only debt professionals who offer free consultations—an industry standard for trustees—and that can step in when [CRA debt](https://grantthorntonlimited.ca/en/debt-help-resources/articles/income-tax-debt-relief) is part of the problem. Service Licensed Insolvency Trustee Debt consultant Credit counsellor Free first consultation Yes No No Federally regulated Yes No No Cost controlled by the Government of Canada via the Office of the Superintendent of Bankruptcy Yes No No Can negotiate directly with creditors Yes No No Can stop wage garnishment and collection calls Yes No No Can handle CRA or income tax debt Yes No No Can consolidate debt into a single monthly payment Yes No Yes Can offer interest-free solutions Yes No No Can reduce total debt/interest paid Yes No No Offers financial education Yes No Yes ## How do trustees get paid? The Office of the Superintendent of Bankruptcy (OSB) regulates LIT fees. This means there are no surprises, no hidden add‑ons, and no high-pressure tactics. In a consumer proposal or bankruptcy, the payments you make include the trustee fees, meaning you won’t receive a separate bill down the road. Even with these fees, you’ll still end up paying less than you initially owed. ## Why should I talk to a Licensed Insolvency Trustee? Talking to a trustee is one of the easiest ways to understand all your debt options. And because consultations are free, there’s no risk in asking questions. LITs are required by their code of ethics and regulations to give you the best recommendation for your situation, even if that means suggesting a non insolvency option. Understanding your choices can give you the confidence and clarity you need to move forward. ## When should I talk to a Licensed Insolvency Trustee? Many Canadians silently struggle with debt. Some are weighed down not only by what they owe, but the shame and perceived stigma associated with asking for help. But you don’t need to wait to hit your breaking point before asking for help. If you’re noticing early warning signs—like only making minimum payments, using credit to cover basic expenses, falling behind on bills, or feeling stressed about money—now is a great time to reach out. ## What’s it like to meet with a Licensed Insolvency Trustee? Meeting with a trustee doesn’t have to be scary—you’re talking to someone who is approachable and wants to understand what you’re dealing with, so they can help you move forward. During your first meeting, you’ll talk openly about your finances, ask questions, and learn whether bankruptcy, a consumer proposal, or another solution is right for you. There is no judgment—just clarity. Many people leave their first meeting feeling lighter and seeing a clear path forward to debt freedom. [Our article walks you through what it’s like to meet with an LIT.](https://grantthorntonlimited.ca/en/debt-help-resources/articles/what-happens-when-you-meet-with-a-lit) ## How can I find a Licensed Insolvency Trustee in Canada? You’re in the right place! At Doane Grant Thornton Limited, we have 50+ years of experience in the industry, over one hundred thousand satisfied clients, and over [70 locations across Canada](https://grantthorntonlimited.ca/en/get-in-touch/our-locations). We offer in-person and virtual (phone or video) appointments to help you reach debt freedom in whatever way works best for you. You can book [your free consultation](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) easily through our website and start your journey today! About the Author Frank Fabiano CPA, CIRP, Licensed Insolvency Trustee ## Latest articles [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/67684/assets-CP-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [What happens to your assets in a consumer proposal? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/65155/recreational-vehicle-square.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [### What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) [ ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbListSmall/63555/influencer-survey.webp) ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [### Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ## Subscribe to our newsletter Get tips and tools to help manage your finances and live debt free. \*I agree to receive communications from Doane Grant Thornton. I understand that I can unsubscribe at any time. ## **Take the first step** to debt freedom Speak to one of our debt solutions professionals during a free, no-obligation consultation. [ Book a free consultation ](https://grantthorntonlimited.ca/en/get-in-touch/contact-us) ## Related articles ![](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/67684/assets-CP-square.webp) ### [What happens to your assets in a consumer proposal? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) In most cases, a consumer proposal allows you to keep all of your assets while bankruptcy may require you to surrender certain non-exempt assets. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-your-assets-in-a-consumer-proposal) ![Marina filled with sailboats and recreational boats along the Charlottetown waterfront on a sunny day.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/65155/recreational-vehicle-square.webp) ### [ What happens to an RV, boat, or ATV loan if you file a consumer proposal or bankruptcy in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) For many Canadians, recreational vehicles offer freedom, adventure, and unforgettable family memories. But if you’ve financed an RV, travel trailer, boat, ATV, snowmobile, or side-by-side, those monthly payments can become difficult to manage if life takes an unexpected turn. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-to-an-rv-boat-or-atv-loan-if-you-file-a-consumer-proposal-or-bankruptcy-in-canada) ![A woman in scrubs sitting on a park bench looking at her phone, with imagery of social media likes and spending surrounding her.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63555/influencer-survey.webp) ### [ Influenced into debt: How social media impacts Canadians' finances ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) While social media may be free to use, the things it influences us to buy often come at a cost. As influencer marketing continues to grow, more Canadians are making purchases based on what they see online. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-influenced-into-debt-how-social-media-impacts-canadians-finances) ![A woman sitting with papers and a calculator in front of her](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/63201/cp-annulment-square.webp) ### [ What happens if you miss a consumer proposal payment? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) Missing a payment during your consumer proposal can feel scary—but it’s not the end of the road. This article explains exactly what happens if you miss a consumer proposal payment, how to avoid annulment, and what to do if your consumer proposal is annulled. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-miss-a-consumer-proposal-payment) ![A young woman sits with and supports an older woman holding a cane.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/Web-image-square/_articleThumbMedium/58677/caregiver-article-square.webp) ### [ Tips to avoid debt as a family caregiver in Canada ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) With the rising cost of living and long waitlists for long-term care, more Canadians are becoming family caregivers, but it can come with an emotional and financial cost. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-tips-to-avoid-debt-as-a-family-caregiver-in-canada) ![Person packing a box for moving](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/57664/adult-child-moving-home-square.webp) ### [ How to budget when your adult child moves back home ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) Adult children moving back home isn’t just a trend—it’s quickly becoming the norm. While the cost of living continues to climb across Canada, many Gen Z and millennial Canadians are packing up their apartments and returning to the nest as “boomerang kids.” [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-how-to-budget-when-your-adult-child-moves-back-home) ![Person looking down at bills with head in hand, surrounded by paperwork and an open laptop.](https://pr-assets.grantthorntonlimited.ca/craftcmsimages/Article-imagery/_articleThumbMedium/56923/utilities-square.webp) ### [ What happens if you don’t pay your utility bills in Canada? ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada) If you’re worried about unpaid electricity, heating, or water bills, you’re not alone. But disconnection isn’t immediate, and you usually have options to protect your service while you get back on track. [ Read this article ](https://grantthorntonlimited.ca/en/debt-help-resources/articles/article-what-happens-if-you-dont-pay-your-utility-bills-in-canada)