Last reviewed: 7 October 2026
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The two counselling sessions in a Canadian bankruptcy or consumer proposal: what the law and the OSB say
If you file a bankruptcy or a consumer proposal in Canada, the Office of the Superintendent of Bankruptcy (OSB) says you will be required to attend two counselling sessions led by a qualified counsellor or a Licensed Insolvency Trustee (LIT).[1] The Bankruptcy and Insolvency Act (BIA) requires the trustee or administrator to provide, or provide for, that counselling.[2] This page explains what the statute and the OSB’s Insolvency Counselling Program say. It does not say whether insolvency is right for you.
The short version
- It is part of the process. The OSB calls the Insolvency Counselling Program part of the federally regulated insolvency process, made up of four online modules and two in-person counselling sessions.[3]
- Who provides it. The LIT is responsible for providing, or providing for, the counselling. An LIT may provide it personally or assign a BIA Insolvency Counsellor.[3]
- Who pays and how. In a bankruptcy the estate pays the cost as a cost of administration, according to the prescribed tariff, and the OSB says the counsellor may not take payment directly from the debtor.[2][3]
- Skipping it has consequences. The statute switches off the automatic-discharge rule for a bankrupt who has refused or neglected to receive counselling, and a certificate of full performance is not issued for a consumer proposal in that case.[2]
What the statute says
| BIA provision | What it says |
|---|---|
| Section 157.1(1), bankruptcy | The trustee shall provide, or provide for, counselling for an individual bankrupt, and may do so for a person financially associated with the bankrupt as specified in the Superintendent’s directives. The estate of the bankrupt pays the costs of the counselling as costs of administration, according to the prescribed tariff.[2] |
| Section 157.1(2) | Where counselling is provided by a trustee to a debtor who is not a bankrupt, it must be provided in accordance with the Superintendent’s directives.[2] |
| Section 157.1(3) | The automatic-discharge provision in section 168.1(1) does not apply to an individual bankrupt who has refused or neglected to receive counselling.[2] |
| Section 66.13(2)(b), consumer proposal | An administrator who agrees to assist a consumer debtor shall provide, or provide for, counselling in accordance with the Superintendent’s directives.[2] |
| Section 66.12(6)(b)(ii) | A consumer proposal must provide for payment of the prescribed fees and expenses of any person in respect of counselling provided under section 66.13(2)(b).[2] |
| Section 66.38(2) | The certificate that a consumer proposal has been fully performed is not issued to a consumer debtor who has refused or neglected to receive counselling under section 66.13(2)(b).[2] |
What the OSB program looks like
The OSB says the program is designed for people who have filed an insolvency proceeding under the BIA, though anyone can view the online modules. It has two stages, each with an online part followed by an in-person session.[3]
| Stage | Online part | In-person session |
|---|---|---|
| 1. Budgeting, near the start of the insolvency process | An introduction and a budgeting module, which helps develop a personalized, basic budget that is realistic and achievable.[3] | The personal budget is discussed with the counsellor.[3] |
| 2. Planning for the future, focused on post-insolvency goals, spending habits and use of credit | Three modules: setting and achieving financial goals, spending habits, and responsible use of credit.[3] | The list of financial goals is discussed with the counsellor.[3] |
The OSB gives estimated completion times for each module and says they are estimates, not targets.[3] It also says the modules help the debtor prepare for the two in-person sessions with an LIT or the LIT’s registered counsellor.[3]
Who can be a counsellor and what they may not do
The OSB says LITs are not allowed to register someone as a BIA Insolvency Counsellor if that person is involved in activities that could have a negative impact on debtors, or if the person acts as a go-between with debtors and LITs in exchange for payment or consideration from debtors.[3] It also says insolvency counselling is solely for the benefit of the debtor.[3]
What it costs
The OSB says the fee for each session comes directly out of the estate if you are bankrupt, or from your proposal. It says the service is federally regulated, so you cannot be charged directly or for a greater amount, and that a counsellor is not allowed to take any payment directly from an insolvent debtor before, during or after the sessions.[3] This page does not print the per-session amount because the prescribed tariff can change; ask your LIT for the current figure, and see how to check a Licensed Insolvency Trustee.
How it connects to getting discharged
For a first bankruptcy, the OSB’s consumer brochure lists the conditions for automatic discharge nine months after filing: the discharge is not opposed by the LIT, a creditor or the OSB; you have not refused or neglected to receive counselling; and you are not required to pay part of your surplus income.[1] The statute’s automatic-discharge section is subject to the counselling rule in section 157.1(3) and sets out its own timing and conditions for first-time and repeat bankrupts. For a first bankruptcy it provides for automatic discharge at 9 months unless an opposition is filed or surplus-income payments are required, and at 21 months unless an opposition is filed; it does not apply to a bankrupt referred to in section 172.1(1).[2] For how the two insolvency options compare, see bankruptcy vs. the consumer proposal in Canada.
What this page does not cover
It does not cover the content of the sessions beyond the OSB’s outline, provincial rules, or what a counsellor will advise in your situation. Insolvency counselling under the BIA is different from the budgeting and debt-management services of the credit counselling agencies described in how Canadian credit counselling agencies are accredited. The Orderly Payment of Debts program is a separate mechanism; see Orderly Payment of Debts, explained. This is general information, not legal advice. Our Standard does not vet Canadian companies.
Your next step
The OSB’s own lookup is where a Licensed Insolvency Trustee’s licence can be confirmed; see how to check a Licensed Insolvency Trustee.
When we will update this page
We revisit it when the OSB updates the program or the cited BIA sections are amended. Sources last read 7 October 2026; the OSB program page carries a last-modified date of 25 March 2019 and the consumer brochure page one of 2 December 2015.
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.