Are you looking for a professional career, helping others in the financial field? Perhaps you’ve come across Licensed Insolvency Trustee (LIT) careers and you’re wondering what it might take to qualify. While becoming an LIT requires extensive training, it can be an extremely rewarding career that offers a sense of pride helping others find solutions to their debt problems.
You’ll receive immense job satisfaction, knowing that you’re the best qualified professional to help others who are struggling financially. Regardless of the circumstances, your duty is to ensure both the debtor and creditor are treated fairly.
What does a Licensed Insolvency Trustee do?
Licensed Insolvency Trustees are the only federally regulated debt advisors in Canada. They are licensed professionals who can provide advice and administer legally binding proceedings, for those struggling with debt. Licensed by the Office of the Superintendent of Bankruptcy, LITs are there to offer unbiased, professional opinions on the best debt settlement option available.
A Trustee is responsible for:
- Administering Bankruptcies and Consumer Proposals
- Protecting the rights of both the debtor and their creditors
- Offering the best possible, unbiased financial advice
- Helping to alleviate debts
- Offering credit counselling services
How many Licensed Insolvency Trustees are there in Canada?
In Canada, there are over 1,066 individual Trustees and 218 different Licensed Insolvency Trustee firms. LIT’s are located in every major city and are there to help you find your best debt options.
Who does a Trustee work for?
Most LITs work for a Bankruptcy and insolvency firm or company, but each Consumer Proposal or Bankruptcy filing is assigned to a specific LIT. This means if a Trustee makes an error, their personal license is at risk, which is why the training, education and practical experience requirements to become an LIT are so complex.
However, Licensed Insolvency Trustees also have a duty of care to all of the stakeholders involved in the insolvency process, including the debtor, their creditors and the “insolvency system”. LITs are officers of the Court and are therefore held to a higher standard of responsibility than other debt or financial advisors.
How to become a Licensed Insolvency Trustee
To become an LIT, you must be granted your license by the Superintendent of Bankruptcy. Before that license is granted, the Superintendent must be satisfied that you meet certain qualifications and criteria, including:
- Being of “good character” and reputation: The Superintendent of Bankruptcy will look at whether you have had any criminal offences
- Be solvent: The Superintendent will want to check whether you have ever declared Bankruptcy or filed a Consumer Proposal. You should be financially secure.
- Successfully completing the Chartered Insolvency and Restructuring Professional (CIRP) Qualification Program (CQP)
- Successfully completing the Insolvency Counsellor’s Qualification Course or the Practical Course on Insolvency Counselling; and
- Passing an Oral Board of Examination: This exam is administered by the Office of the Superintendent of Bankruptcy. You will deliver a response to six questions to a panel of three people: The Superintendent of Bankruptcy, an LIT and an insolvency lawyer.
A prospective Trustee should also have a strong background in accounting and finance. In fact, there are many LITs who are also chartered accountants. While this isn’t a requirement to become an LIT, it will often benefit you to have a background in insolvency studies.
The Chartered Insolvency and Restructuring Professional Program
The Chartered Insolvency and Restructuring Professional Program or CIRP Qualification Program (CQP) is the official qualification process for those looking to become an LIT.
During the program you will complete work experience in the field, as well as gaining the knowledge, skills and abilities required.
Challenges of becoming a Licensed Insolvency Trustee
Working as an LIT can be a rewarding career, but the road to becoming qualified may come with its challenges.
Once you are granted your license by the Superintendent of Bankruptcy, you will be put on a probationary period for 24 months. The probation will limit the types of files you are allowed to handle while you learn all the responsibilities of the profession.
Qualifying as an LIT is a rigorous and lengthy process, often taking up to eight years to complete, so it’s important that you have the drive and passion to motivate you to get to the finish line. You will need to pass all the exams to qualify.
After qualifying you will then be able to find a firm that is going to offer you the required training you will need to get a full license. You’ll need to find a firm that will offer you corporate and consumer work so you are exposed to different scenarios and environments within the field.
Looking to kickstart your Licensed Insolvency Trustee career?
Here at Allan Marshall & Associates, we are always interested in hearing from hard-working individuals who strive to help others. You’ll be joining a friendly team of professionals who take pride in what they do. Take a look at our jobs listings or contact us today for more information.
We have offices located in BC, Alberta, and throughout the Maritime provinces (New Brunswick, Nova Scotia, and PEI).