Debt Consultants and Licensed Insolvency Trustee – What’s the Difference?
I was asked an interesting question the other day: “Is there such a thing as an unlicensed Insolvency Trustee?” The short answer is no— the Insolvency Trustee certification is very strictly regulated by the Office of the Superintendent of Bankruptcy (OSB). However, there are unregulated advisors for debt-related issues, known as debt consultants.
So, What’s the Difference?
Debt consultants are completely unregulated by the OSB, so their services are limited to general debt advice and assistance with filling out paperwork. They do not require any formal training or relevant background in debt management and resolution, and have very few restrictions as to what they can charge for the services they provide.
Licensed Insolvency Trustees, on the other hand, are very strictly regulated with regard to both their background and business model. This strict regulation comes from governing bodies, including the OSB and the Canadian Association of Insolvency and Restructuring Professionals (CAIRP). These governing authorities not only ensure that the Trustees are qualified, but that there are a number of resources through which you can seek restitution if your Licensed Insolvency Trustee fails to represent your interests.
Unlicensed Debt Consultants Cannot File Consumer Proposals or Serve as a Bankruptcy Trustee
Federal laws dictate that only Licensed Insolvency Trustees may act as Administrators through all Consumer Proposals, and serve as Trustee in all Bankruptcies. These roles cannot be filled by an unlicensed debt consultant, under any circumstances.
This is certainly for the best, as Licensed Insolvency Trustees are specifically trained and qualified to negotiate directly with creditors on your behalf in a number of capacities, and have the experience and knowledge required to help you to find the most favourable solution to your current debt situation.
Consultations with Our Licensed Insolvency Trustees are Free of Charge
Most debt consultants charge an upfront fee for which there is no guarantee on the quality of service provided. At Fuller Landau Debt Solutions, however, our initial consultations are always free of charge.
If you’re saddled by debt and would like to know your options without paying an upfront fee, call today to schedule a free consultation with one of our experienced and compassionate Licensed Insolvency Trustees. Together, we’ll look at your debt resolution options, including credit counselling, debt consolidation, Consumer Proposals, and Bankruptcy. With offices in Toronto and Hamilton, the Fuller Landau Debt Solutions team can help you get a fresh start and lead a FULLER life..