New Trustee Fees in Canada: How Licensed Insolvency Trustees Are Paid

We believe that transparency is essential—especially when it comes to something as important as resolving debt. With new trustee fees in Canada coming into effect on March 31, 2026, many Canadians are wondering what this means for them.

How Does This Impact Your Debt Relief Options?

The good news? While fees are increasing slightly, the system remains highly regulated, fair, and designed to protect consumers – not create barriers.

Quick Facts

• Trustee fees are increasing by 2.7% due to inflation (CPI adjustment).
• These fees are regulated by federal law, ensuring consistency across Canada.
• Most individuals do not pay upfront fees to get debt help from a Licensed Insolvency Trustee (LIT).
• Fees are typically included within your repayment plan (not added on top).
• LITs remain the only professionals legally authorized to file consumer proposals and bankruptcies in Canada.

How Does a Licensed Insolvency Trustee Get Paid?

One of the most common questions people have is, “If I’m already struggling with debt, how can I afford to hire a professional?” The answer is simple: Licensed Insolvency Trustees do not bill you by the hour, and you do not receive a separate monthly invoice for their services. Instead, LITs are paid directly from the funds administered within your debt relief program. Their fees are strictly regulated by the federal government under the Bankruptcy and Insolvency Act (BIA), meaning the payment structure is transparent and fair.

Here is how it works depending on the solution you choose:

• In a Consumer Proposal: You and your LIT will work out a single, manageable monthly payment that you make to the “estate” (the pool of money that will be divided among your creditors). The trustee’s fees are simply a regulated percentage taken out of those payments. For example, if you agree to pay $200 a month, the trustee’s fees are deducted from that $200 before the remainder is distributed to your creditors. You are never charged extra on top of your agreed-upon payment.
• In a Bankruptcy: The trustee’s fees are covered by the assets realized in the bankruptcy (such as a tax refund) or through your required monthly contributions, which are based on government-set income guidelines.

Because the creditors are essentially the ones paying the trustee’s fees out of the money they recover, the system is designed so that you can get the professional, legally binding help you need without having to come up with large, out-of-pocket professional fees.

Why Are Trustee Fees Changing in 2026?

The fee adjustment taking effect on March 31, 2026, is part of a routine, government-mandated process under the Service Fees Act (SFA). Each year, certain federal fees are adjusted based on the Consumer Price Index (CPI), a measure of inflation.

This means the increase is not arbitrary. It reflects the rising cost of delivering regulated insolvency services while maintaining a standardized national system.

What Fees Are Increasing?

As of March 31, 2026, the following federally regulated filing fees will increase by 2.7%:

Filing Fees

• Summary Administration (Single Bankruptcy): From $89.95 → $92.38
• Ordinary Administration / Division I Proposal: From $179.92 → $184.78
• Division II (Consumer Proposal): From $119.93 → $123.17

Licensing Fees

There will also be increases to:

• Annual licence renewal fees for Licensed Insolvency Trustees
• Application fees for new trustee candidates

Important Exception

• The Summary Administration Levy (Rule 123) remains unchanged at a maximum of $215.14 and is not subject to CPI increases.

What This Means for You

For most individuals dealing with debt, these changes will have minimal direct impact.

Here’s why:

1. Fees Are Built Into the Process

When you file a consumer proposal or bankruptcy, trustee fees are not typically charged upfront. Instead:

• They are deducted from your monthly payments, or
• Paid from funds distributed to creditors

This means you won’t see a sudden out-of-pocket increase due to these changes.

2. Costs Remain Predictable and Fair

Because fees are governed by the Bankruptcy and Insolvency Act (BIA):

• You’ll receive clear, regulated terms
• Fees are consistent across Canada
• There is no price shopping or hidden billing

3. Your Debt Relief Options Stay the Same

These fee adjustments do not change your eligibility for:

• Bankruptcy
• Consumer proposals
• Credit counselling support

Your options—and your path forward—remain intact.

Proposed Changes Beyond 2026 Fees

In addition to the annual CPI adjustment, the Office of the Superintendent of Bankruptcy (OSB) has proposed longer-term updates to modernize the system.

Potential Structural Changes

• Revised Fee Model:
  Trustees may receive:
  • 100% of the first $1,700 of realizable assets
  • 45% of additional assets up to $20,000
• Higher Asset Thresholds:
  The limit for summary administration may increase from $15,000 to $20,000, with future indexing for inflation.

Why This Matters

If implemented, these changes could:

• Simplify administration for smaller estates
• Expand eligibility for streamlined processes
• Improve efficiency within the system

However, these are proposals, not yet finalized.

Understanding Who Can Help You (And Who Can’t)

When navigating debt solutions, it’s important to understand the difference between providers:

Licensed Insolvency Trustees (LITs)

• Federally licensed and regulated
• Authorized to administer:
  • Bankruptcies
  • Consumer proposals
• Provide legally binding solutions to debt

Non-Profit Credit Counselling Agencies

• Can assist with budgeting and repayment plans
• Cannot offer consumer proposals or bankruptcy filings

Unregulated “Debt Advisors”

• Often charge large upfront fees (e.g., $2,000)
• Typically refer clients to a Licensed Insolvency Trustee
• May not provide additional value

Key takeaway: If you are considering formal debt relief, speaking directly with a Licensed Insolvency Trustee ensures you are getting accurate, regulated, and complete advice.

Why Regulation Matters

The Canadian insolvency system is designed to protect consumers through:

• Federal oversight by the Office of the Superintendent of Bankruptcy
• Professional standards set by governing bodies
• Strict rules around advertising, conduct, and fees

This ensures that:

• Information provided is accurate and not misleading
• Fees are transparent and standardized
• Consumers receive fair treatment

What Should You Do Next?

If you’re feeling overwhelmed by debt, the upcoming fee adjustment shouldn’t be a deterrent. In fact, now is a good time to:

• Understand your options
• Ask questions about how fees are structured
• Explore solutions that fit your financial situation

At Adamson & Associates, we offer free initial consultations so you can get clear answers—without obligation.

Common Questions About Trustee Fees (Quick Answers)

Do I need to pay upfront to speak with a Licensed Insolvency Trustee?

No. Initial consultations are typically free.

Will the new fees increase my monthly payments?

In most cases, no. Payments are based on your overall agreement with creditors, not just filing fees.

Are trustee fees negotiable?

Fees are regulated under federal law and are consistent across Canada.

Can I avoid these fees by using a debt advisor?

Unregulated advisors often charge additional fees and cannot provide legal debt solutions.

Is a consumer proposal still worth it?

Yes. It remains one of the most effective ways to reduce debt while keeping your assets.

Moving Forward with Confidence

The new trustee fees in Canada reflect a modest, inflation-based adjustment within a system designed to be fair, transparent, and accessible. More importantly, they do not change the most critical fact:

If you are struggling with debt, there are structured, legally protected solutions available to help you move forward.

We’re here to guide you through those options—clearly, honestly, and professionally.

Book your free consultation today and take the first step toward financial clarity.