consumer proposal,  personal bankruptcy,  personal finance

What to expect when meeting with a Licensed Insolvency Trustee

Please listen to me first.

Due to my poor financial decisions and gambling addiction I have accumulated following debts: Credit card = 15000$ Line of credit= 15000$ Money mart=12500$ Cash money =6000$ Other credit card= 4200$+ 5000$

I can’t seem to get out of this. It’s never ending cycle.

I am thinking to apply for consumer proposal.

Can someone help me what paper work they will ask ?

Like tax filing or income verification.

I don’t own a house or have a vehicle loan.

Thank you and appreciate.


Victor Fong, Licensed Insolvency Trustee replies:

Here’s what you’ll typically be asked during a consultation meeting. Please note that this list of questions isn’t comprehensive:

  1. What is your net monthly income you what are your monthly living expenses?

  2. Are you single or are you married with dependents? If so, what is your spouse’s net monthly income (this would include employment income, child support from an ex-spouse, the Canada Child Benefit, etc.). An LIT is required to evaluate the income and expenses of the entire family unit.

  3. Who are your creditors, what are the current balances owing and what are the account numbers?

  4. Has anyone co-signed any of your debts?

  5. Have you co-signed debts for anyone else?

  6. Do you own any physical assets such as real estate or a motor vehicle?

  7. Do you have any financial assets such as life insurance, a work pension, RRSPs, TFSAs, RESPs, a brokerage account, crypto currencies, etc.?

  8. Have you previously been bankrupt? If so, did you receive your discharge?

  9. Have you previously filed a consumer proposal? If so, did you complete it?

  10. Are you involved in a lawsuit where you may be awarded a judgement?

  11. Do you expect to receive any windfall within the next 12 months, such as an inheritance?

  12. Have you paid off any creditors (including relatives) in full within the preceding 12 months?

  13. Have you sold or transferred any assets within the preceding 5 years, such as real estate? If so, what was the consideration you received and what happened to the money?

In terms of documentation, here’s what you typically will be asked to provide:

  1. Photo ID

  2. Proof of income such as your last two paystubs as well as proof of income for your spouse

  3. Vehicle ownership and certificate of insurance if you own a vehicle

  4. A recent real estate appraisal or opinion of value as well as a current mortgage statement, property tax bill and title deed if you own real estate

  5. The most recent statements for any financial assets you have

  6. Your most recent Notice of Assessment from the Canada Revenue Agency

In your particular situation, your LIT might ask for some evidence that you’re attending gambling counselling with a recognized institution such as the Centre for Addiction & Mental Health (CAMH).


Victor is the President of Fong and Partners Inc. He is a Licensed Insolvency Trustee and Chartered Professional Accountant. With many years of experience in the insolvency field, Victor has been involved in both corporate and consumer insolvency engagements. Previously with a large national firm, Victor founded Fong and Partners Inc. so that he could dedicate his professional life to help people from all walks of life to deal with their debt.