Superintendent of Bankruptcy: How to avoid paying unnecessary fees on your debt

Superintendent of Bankruptcy: How to avoid paying unnecessary fees on your debt

The Office of the Superintendent of Bankruptcy (OSB) is continuing its efforts to help Canadians experiencing serious financial difficulties find the right debt solution. These efforts include increasing consumer awareness about the unregulated Debt Advisory Marketplace and helping consumers identify reliable sources of debt assistance.

Building on the joint consumer alert issued by the OSB and the Canadian Association of Insolvency and Restructuring Professionals during Financial Literacy Month 2022, the OSB has developed consumer awareness material to help promote the Debt Solutions Portal, to warn Canadians about unregulated debt advisors and to point consumers to Licensed Insolvency Trustees (LIT)s for trustworthy advice.

With the goal of reaching as many consumers as possible, the OSB has asked LITs to amplify the message through their websites and networks. Below is one of the articles they've provided:

How to avoid paying unnecessary fees on your debt

If you’re trying to pay down debt and need help, it can be tempting to work with someone who promises to fix the issue fast. But be careful – some debt advisors charge hundreds or even thousands of dollars for debt relief solutions they aren’t authorized to provide or that you don’t need.

This “quick fix” can end up costing you a lot more money, without chipping away at your debt. Instead of turning to an unregulated, unlicensed debt advisor, consider speaking with a Licensed Insolvency Trustee (LIT).

LITs offer independent, unbiased advice about dealing with debt. They are required to assess your financial and personal situation and to discuss all options available for solving financial difficulties, including insolvency and non-insolvency options. And you can know that you’re dealing with someone who has proven they have the knowledge, experience and skills to be granted a licence from the Office of the Superintendent of Bankruptcy.

LIT services are available across the country, even in remote locations. Usually the first consultation is free, so you can get reliable advice with no commitment and no upfront fees.

If you’re struggling with debt, don’t wait too long. Be proactive and seek help sooner rather than later. Learn more and find a LIT at

Source: Office of the Superintendent of Bankruptcy (2023) How to avoid paying unnecessary fees on your debt.

Charla Smith & Company is a Calgary-based Licensed Insolvency Trustee, serving the southern Alberta region. We regularly help individuals review their options for dealing with overwhelming debt. If you'd like to schedule a free consultation, please reach out to us.


With our experience and our caring approach, we will help you find the best option for debt relief based on your unique situation - from advice on talking to your creditors to a consumer proposal or bankruptcy, and everything in between. We are here to lift the burden caused by overwhelming debt. 

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