Last reviewed: 7 October 2026
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How to check a Licensed Insolvency Trustee in Canada, and what the OSB says about unlicensed debt advisors
The Office of the Superintendent of Bankruptcy (OSB) says a Licensed Insolvency Trustee (LIT) is the only professional authorized to administer insolvency proceedings such as consumer proposals and bankruptcies under the federal Bankruptcy and Insolvency Act (BIA), and that the OSB licenses and oversees them.[1] This page explains what the statute and the OSB say about who may act as a trustee, where the OSB lets you look one up, and what the OSB lists as warning signs. It does not rate or recommend any person or company.
The short version
- Who can file for you: the OSB says an LIT is the only professional authorized to administer consumer proposals and bankruptcies. The OSB licenses, regulates and oversees the trustee profession.[1]
- Pretending is an offence. Section 202(1)(a) of the BIA makes it an offence for a person who is not a licensed trustee to do any act as, or represent himself to be, a licensed trustee. The OSB adds that using the designation “Licensed Insolvency Trustee” or “LIT” without a licence is an offence.[2][1]
- You can look one up. The OSB home page offers a “Find a Licensed Insolvency Trustee (LIT)” search of persons licensed by the OSB to administer bankruptcies and proposals.[3]
- You do not need a separate advisor to reach one. The OSB says you do not need to pay another advisor to find or consult an LIT.[4]
- Complaints go to the OSB. It records and, where appropriate, investigates complaints against LITs, debtors and creditors.[1]
What the statute says
Section 2 of the BIA defines “trustee” (or “licensed trustee”) as a person who is licensed or appointed under the Act.[2] The OSB uses the label “Licensed Insolvency Trustee” or “LIT” for these licensed professionals.[1] The statute is a little wider than the OSB’s summary. Section 66.11 defines the “administrator” of a consumer proposal as a trustee or a person appointed or designated by the Superintendent to administer consumer proposals, and section 14.05 lets the court or the official receiver appoint a responsible local person where no licensed trustee can be found who is willing to act.[2]
Section 202(1)(a) says a person who, not being a licensed trustee, does any act as, or represents himself to be, a licensed trustee commits an offence. Section 202(1) as a whole is punishable on summary conviction, with a fine not exceeding five thousand dollars, imprisonment for a term not exceeding one year, or both.[2]
Licences can lapse or be suspended
A licence is not permanent. Under section 13.2(3), a licence ceases to be valid if the trustee fails to pay the annual fee on time or becomes bankrupt (the Superintendent may reinstate a lapsed licence under subsection (4)). Under section 13.2(5) the Superintendent may suspend or cancel a licence if the trustee has been found guilty of an indictable offence of a character that would impair the trustee’s capacity to perform fiduciary duties, has failed to comply with conditions or limitations on the licence, has ceased to act as a trustee, or asks for it to be cancelled.[2] Section 14.01(1) gives the Superintendent a conduct-based power as well: if, after an inquiry or investigation, it appears that a trustee has not properly performed a trustee’s duties or has been guilty of improper management of an estate, has not fully complied with the Act, the General Rules, the Superintendent’s directives or any law about proper administration of an estate, or it is in the public interest, the Superintendent may cancel or suspend the licence, place conditions or limitations on it, require restitution to the estate, or require the trustee to do something the trustee has agreed to. Section 14.02 requires written notice and a reasonable opportunity for a hearing before those powers are exercised.[2] The OSB describes ongoing oversight through reviews, audits and inspections, and discipline that can include licence suspension or cancellation.[1]
Where to look someone up
- The OSB’s own search. The OSB home page lists “Find a Licensed Insolvency Trustee (LIT): Search for persons licensed by the Office of the Superintendent of Bankruptcy to administer bankruptcies and proposals.” The search is on the OSB home page, which is the OSB’s own place to confirm a licence.[3]
- The OSB’s public decisions. The OSB publishes a page of conservatory measures, professional conduct decisions and licensing decisions, listed by date, along with how many licences are under professional conduct investigation. Reading it tells you what kinds of actions the OSB takes; it is a record of past regulatory decisions, not a rating.[5]
- Fees. The OSB says fees to file a consumer proposal or bankruptcy vary case by case and are regulated by the federal government, and that LITs typically do not charge for the first meeting.[6] Another OSB page says the first consultation is usually free, so you can get advice with no commitment and no upfront fees.[7]
Warning signs the OSB lists
The OSB’s consumer pages describe patterns to watch for.[4][7][8]
| What the OSB describes | The OSB’s own words or summary |
|---|---|
| A magic bullet | “If it sounds too good to be true, it probably is.” Watch for high-pressure sales tactics or unrealistic promises to quickly solve debt problems or fix your credit score.[4] |
| A pricey service | Some companies or debt advisors may charge high fees but only offer a high-interest loan to pay off your debt or claim they can negotiate a better deal with your creditors. The OSB says LITs are legally required to explore all your debt options and are the only professionals authorized to file a consumer proposal or bankruptcy.[4] |
| Claims of authority | The OSB says unregulated, unlicensed debt advisors often claim to be authorized to assist with insolvency options, or offer services they are not licensed to provide, and may market other unnecessary services before, during or after a filing, charging hundreds or even thousands of dollars.[8] |
| A “quick fix” | The OSB says some debt advisors charge hundreds or thousands of dollars for debt relief solutions they are not authorized to provide or that you do not need.[7] |
What an LIT is required to do
The OSB says LITs are required to assess your financial and personal situation and to discuss all options available, including insolvency and non-insolvency options.[7] An LIT is an officer of the court who represents a balance of interests between you and your creditors.[6] The OSB also says an LIT is responsible for providing, or providing for, insolvency counselling;[9] see the two counselling sessions in a Canadian bankruptcy or proposal.
If something goes wrong
The OSB’s complaints page says that any stakeholder outside the OSB can request an investigation by filing a complaint, that ethical complaints against LITs must be in writing, and that a complaint is meant to alert the OSB to possible misconduct. It also says a regulatory complaint does not typically provide a remedy for an individual’s personal loss; remedies under the BIA may be pursued directly and independently. The OSB cannot provide legal advice, act as an advocate for one party, issue a judgement that fraud has occurred, or offer compensation.[10] Use the OSB complaints page for current instructions.
What this page does not cover
It does not say how to choose among trustees, which option (a consumer proposal, a bankruptcy, a credit counselling agency’s plan or something else) suits you, or what any named company is. Credit counselling agencies, which are not trustees, are covered in how Canadian credit counselling agencies are accredited, and the two insolvency options in bankruptcy vs. the consumer proposal. This page covers federal insolvency law only; provincial licensing of debt settlement companies is in how debt settlement companies are licensed in Canada. This is general information, not legal advice. Our Standard does not vet Canadian companies.
Your next step
For anyone weighing a consumer proposal or bankruptcy, the OSB’s own search is the place to confirm a licence, and its pages also include a Debt Solutions Portal for comparing options.[11] The portal itself says its options do not replace an LIT assessment.[11]
When we will update this page
We revisit it when the OSB changes these pages or the cited BIA sections are amended. Sources last read 7 October 2026; the OSB pages carry their own last-modified dates, which range from 2015 to 2026.
What you can do next
- Find a company — see which specific US companies we checked and what we could verify.
- How we check — the rules and sources behind each result.
- More credit help guides
- Report an error on this page or in a result.