What is an Insolvency Trustee?
If you are having financial issues, dealing with large amounts of debt and unsure of how you are ever going to handle this situation, speaking to a Licensed Insolvency Trustee is a good option.
In Canada, a trustee in bankruptcy is a person who has been licensed by the Office of the Superintendent of Bankruptcy to administer bankruptcy and proposal estates under the Bankruptcy and Insolvency Act (BIA). An insolvency trustee is considered an officer of the court and must follow a strict code of ethics. In order to become licensed as a trustee, a person must take years of training.
One major role of a trustee is to always ensure that all parties know and understand their rights and that the rights of debtors and their creditors are protected and respected during bankruptcy and proposal processes.
By law, a Licensed Insolvency Trustee is required to discuss all debt relief options with you after reviewing your financial situation. This makes an insolvency trustee a good person to turn to if you are experiencing financial difficulties.
Working with an Insolvency Trustee
If you are having debt troubles and issues meeting your financial obligations and paying your creditors, you can arrange for a consultation with a trustee in bankruptcy. Most trustees will provide this initial consultation free of charge. During the consultation, the trustee will review your financial situation and provide you with details about the options that are available to you.
Despite having the word “bankruptcy” in their title, a trustee isn’t just there to assist you in filing for bankruptcy. As mentioned, a trustee is required to provide you with all options, even if they are not services that the trustee provides.
In addition, it is always your decision as to how you would like to proceed. An insolvency trustee will let you know all about the available options, but he or she will never push you to choose one option over another.
If you decide to proceed with filing for bankruptcy or consumer proposal, the trustee will work with you to make sure that all required forms are completed and submitted correctly. Your trustee will be responsible for all communication with your creditors from this point on.
Insolvency Trustees and Consumer Proposals
If you have chosen to file a consumer proposal, the trustee will prepare your offer to your unsecured creditors. The trustee will determine what a fair offer will be by reviewing your financial situation based on the information that you provide.
The offer will then be sent to all of your unsecured creditors who will have 45 to decide if they would like to accept your offer or not. If the majority of your creditors choose to accept the offer, then all unsecured creditors are bound by its terms.
If your offer is accepted, you will make your proposal payment to your trustee who will distribute them to your creditors.
During the proposal process, you will be responsible for ensuring that your trustee has your up-to-date contact information. If you move, change jobs or change your phone number, you will need to provide your trustee with this updated information.
Insolvency Trustees and Bankruptcy
If you decide to file for bankruptcy, your trustee will work with you to complete all of the required forms and submit them with the Office of the Superintendent of Bankruptcy. The trustee will also review all of your assets and ensure that you are able to keep all exempt assets. Each province has different laws regarding which assets are exempt and the exempt value of these assets.
During the bankruptcy process, you will need to provide your trustee with monthly proof of income statements. Based upon your income, you may be required to make payments to your trustee who will then distribute them to your creditors. Your trustee will determine whether or not this is required and let you know.
Whether you chose to file for bankruptcy, submit a consumer proposal or use another method to find debt relief and eliminate your debt, an insolvency trustee can help you understand your options. A trustee is there to ensure that you and your creditors are respected and that you receive the services that you are legally entitled to. Sitting down for a free consultation with an insolvency trustee can help you find the debt relief solutions that you need.