Licensed Insolvency Trustees Vs. Debt Consultants
Highlighting the differences.
The advantages of dealing with a Licensed Insolvency Trustee
At BDO, our Licensed Insolvency Trustees (LITs) are licensed by the federal government, and can file a consumer proposal or file for bankruptcy on your behalf. This sets them apart from an unlicensed, unregulated debt consultant, who cannot offer you these solutions. As LITs, our fees are set and regulated by the government—unlicensed debt consultants can charge whatever they wish, and their fees can vary widely. This table highlights some of the major differences between a Licensed Insolvency Trustee and an unlicensed debt consultant.
WHAT IS THE DIFFERENCE BETWEEN
A LICENSED INSOLVENCY TRUSTEE AND A DEBT CONSULTANT
| LIT | DEBT CONSULTANT | |
|---|---|---|
| Free first consultation | ✅ | ❓ |
| Can file a consumer proposal | ✅ | ❌ |
| Can file a bankruptcy | ✅ | ❌ |
| Federally licensed | ✅ | ❌ |
| Experience and education assessed by the government | ✅ | ❌ |
| Regulated fees | ✅ | ❌ |
| Formal complaint mechanism | ✅ | ❓ |
| Insolvency counselling at a low set rate delivered to federal standards | ✅ | ❌ |