What to Expect When You First Meet a Licensed Insolvency Trustee
Quick Overview
In your first meeting with a Licensed Insolvency Trustee (LIT), you’ll review your income, debts, and monthly expenses, learn whether options like a consumer proposal or bankruptcy apply to you, and leave with a clear explanation of next steps. The consultation is confidential, judgment-free, and focused on practical options.
Licensed Insolvency Trustee (LIT):
A Licensed Insolvency Trustee is a federally regulated professional in Canada and the only professional authorized to file and administer consumer proposals and bankruptcies under the Bankruptcy and Insolvency Act.
Why the First Meeting With a Licensed Insolvency Trustee Matters
Reaching out to a Licensed Insolvency Trustee (LIT) can feel intimidating. We understand that most people come to us after months or years of trying to manage things on their own, juggling bills, and hoping the pressure will ease up.
At Smythe Insolvency, our goal in the first meeting is straightforward: help you understand where you stand and what realistic options are available, whether that’s a consumer proposal, bankruptcy, or another path that fits your situation.
You’re Not Alone
If debt has started taking up too much space in your day, worrying about payments, screening calls, feeling behind no matter how hard you try, you’re not alone. Many people who contact us are dealing with a mix of life and money: a job change, rising costs, family changes, health issues, or debt that gradually snowballed.
If you’re unsure whether what you’re dealing with “counts” as insolvency, our article on what insolvency means and what to do if you’re insolvent helps put the situation into clearer terms.
What Are Common Concerns Before Meeting a Licensed Insolvency Trustee?
Before the first call or appointment, we hear a lot of the same concerns:
“Will I be judged?”
No. Our conversations are respectful and practical. We focus on what’s happening and what can be done next.
“Are you going to push me into bankruptcy?”
Not at all. Bankruptcy is one option, and it’s not the right fit for everyone. We’ll explain consumer proposals, bankruptcy, and alternatives so you can compare them clearly.
“Will I feel pressured?”
You’ll get straightforward information and recommendations based on your circumstances, not a scripted pitch.
If you’ve ever wondered why it matters who you speak with, our article on the importance of working directly with a Licensed Insolvency Trustee explains what an LIT does and why that federal regulation matters.
What Does a Licensed Insolvency Trustee Do?
A Licensed Insolvency Trustee is a federally regulated professional. In Canada, we’re the only professionals authorized to file and administer insolvency solutions under the Bankruptcy and Insolvency Act, such consumer proposals and bankruptcies.
That regulation exists for a reason: people deserve clear explanations, transparent processes, and real accountability when making major financial decisions. For a simple breakdown of terms people often mix up, our article on the difference between bankruptcy and insolvency explains it in plain language.
What Happens in the First Meeting With a Licensed Insolvency Trustee?
Every consultation is a little different, but here’s what you can generally expect when you meet with one of our trained debt advisors.
We start with what’s going on right now.
Sometimes it’s the total debt. Sometimes it’s collection calls. Sometimes it’s the stress and uncertainty.
We review the basics of your finances.
We’ll ask about your income, household expenses, and the types of debt you’re dealing with. We may also ask whether you have secured debts (like a mortgage or car loan) versus unsecured debts (like credit cards or payday loans).
We outline the options that make sense for your situation.
If a consumer proposal is a fit, we’ll explain how it works and what it typically looks like in practice. If bankruptcy is appropriate, we’ll explain what that process generally involves. If neither is the best route, we’ll tell you that too.
If you want a better sense of what it’s like to work with a trustee beyond the first meeting, our blog post What You Need to Know About Working with a Bankruptcy Trustee walks through the relationship and what people commonly experience.
What Should I Bring to My First Meeting With a Licensed Insolvency Trustee?
You don’t need a full binder of paperwork to speak with us. If you have these handy, they can help us give you clearer guidance:
- a rough list of your debts (credit cards, loans, CRA, payday loans, etc.)
- recent statements or collection letters
- approximate monthly costs (housing, utilities, groceries, transportation)
- income details (pay stubs, benefits, or a self-employment estimate)
Even if you only have a general picture, that’s enough to start.
What Will I Know After My First Meeting With a Licensed Insolvency Trustee?
A strong first meeting should give you something many people haven’t had in a long time: clarity.
You’ll come away with:
- A clear snapshot of your current financial situation
- An explanation of which debt relief options apply to you
- A comparison of consumer proposals and bankruptcy, if relevant
- An understanding of next steps and typical timelines
Is a Meeting With a Licensed Insolvency Trustee Confidential?
This is one of the most common concerns we hear—will people find out?—and it’s completely understandable. Your consultation with us is confidential, and speaking with a Licensed Insolvency Trustee does not notify your employer, family, or anyone else.
If you decide to proceed with a formal option like a consumer proposal or bankruptcy, we’ll walk you through what that means in practical terms, including what information is shared, how the process can affect your credit, and what rebuilding typically looks like afterward.
Why Do I Often Feel Better After the First Conversation?
Debt stress has a way of shrinking your world. People often tell us they feel a noticeable sense of relief after the first conversation, not because everything is solved in a moment, but because they finally understand the options and what a path forward could look like.
Clarity makes it easier to make decisions, and decisions are what create change.
What’s the Next Step If I’m Ready to Talk to a Licensed Insolvency Trustee?
If you’re exploring debt relief and wondering whether a consumer proposal or bankruptcy might apply to you, we encourage you to reach out to us and book a free consultation with one of our debt experts.
The first step is a confidential conversation where we review your situation and explain your options clearly, so you can move forward with a plan of action.
Frequently Asked Questions About Meeting With a Licensed Insolvency Trustee
- Is the first meeting with a Licensed Insolvency Trustee free?
Yes, an initial consultation with a Licensed Insolvency Trustee is free and confidential. The purpose of the first meeting is to review your situation and explain your options before you decide how to proceed. - Will a Licensed Insolvency Trustee force me into bankruptcy?
No. A Licensed Insolvency Trustee explains all available options, including consumer proposals, bankruptcy, and alternatives, and helps you understand which ones apply to your situation. - Do I have to be insolvent to speak with a Licensed Insolvency Trustee?
No. Many people speak with a Licensed Insolvency Trustee before reaching formal insolvency to understand their options and avoid problems getting worse. - Will my employer or family find out if I speak with a trustee?
No. Speaking with a Licensed Insolvency Trustee is confidential and does not notify your employer, family, or anyone else. - How long does the first meeting with a Licensed Insolvency Trustee take?
Most first meetings take about 30 to 60 minutes, depending on your situation and the questions you have. You don’t need to have everything perfectly prepared to get started.
