Position Paper / LITs Promoting and Facilitating Loans to Debtors

The Office of the Superintendent of Bankruptcy has published a position paper to provide guidance on what is expected of Licensed Insolvency Trustees (LIT)s with regards to promoting and facilitating loans to debtors.

The OSB is of the view that LITs promoting or facilitating such loans is inconsistent with the Code of Ethics for Trustees and with an LIT's roles and responsibilities under the Bankruptcy and Insolvency Act and the Bankruptcy and Insolvency General Rules.

LITs are therefore expected to cease this practice which negatively impacts the LIT profession and the integrity of the insolvency system.

For details, please visit the Position Paper on LITs Promoting and Facilitating Loans to Debtors page.