Meeting with a Trustee in Bankruptcy
Debt is stressful and often difficult to deal with. It can sometimes feel like there is no way out and nowhere to turn. However, that isn’t the case. There are ways to get out of debt and people who can help you find the right solution for your situation. One of these people who can help is called a bankruptcy trustee or trustee in bankruptcy. This is a person who has been trained, licensed and registered by the federal government. Trustees have to study and receive a license in order to provide services.
But what services does a bankruptcy trustee provide? Trustees are able to administer bankruptcy and consumer proposal processes. If you wish to file for bankruptcy or complete a consumer proposal, the process will need to be administered by a bankruptcy trustee.
However, trustees are also required to review your financial situation and provide you with details on the different options that are available to you. This can be very valuable. Many people are unaware of what they can do to reduce or eliminate their debt. They may be familiar with the concepts of legal processes like bankruptcy and consumer proposal, and they may even understand some aspects of these processes, but many of the details are generally not known to the general public.
When you meet with a bankruptcy trustee, you’ll find out information on all of the potential options that are available to you. Trustees are bound by a strict code of ethics, so they are required to inform you of details on all possible options, not just those that they provide. This is different than many other financial professionals who may only understand or be familiar with one or two options.
Free Consultation with a Bankruptcy Trustee
Most trustees offer free consultations. This means that there is no cost to meet with a trustee and have him or her review your financial situation. The trustee will look at your finances, including the amount of debt that you have, your income and your expenses. He or she will then let you know which options are available to help you reduce or eliminate your debt.
The choice for how you would like to proceed is always 100% up to you. You will never be pushed or persuaded to choose one option over another. You will, however, be given important details about the available options so that you can make the right choice for your financial future.
Every situation is different and there is no universal debt relief option that always works for all people. Trustees understand this and this is why they present all options to you so that you can choose the one that best meets your unique needs.
Bankruptcy and Consumer Proposal
A bankruptcy trustee is licensed and trained to administered consumer proposal processes as well as bankruptcies. If you wish to proceed with either of these legal processes, you will need to do so with a trustee.
In both of these situations, if you decide to go ahead, your trustee will assist you in completing all of the required paperwork and filing it. Filing can now be done electronically.
In the case of a consumer proposal, the bankruptcy trustee will determine what a fair offer to your unsecured creditors will be and send this offer for review. If the proposal is accepted, you will make your proposal payments directly to your trustee. He or she will then distribute them to your creditors. There are no additional administration costs. All administrative fees are taken from the proposal payments.
This is another important fact to address about trustees in bankruptcy. As they are licensed and regulated by the federal government, all bankruptcy trustee fees are set and regulated. This is different from many other financial professionals.
As part of the bankruptcy and consumer proposal processes, you will need to ensure that you keep your trustee up to date with your address, contact information and employment details. You will also need to take two financial counselling sessions.
If you are having difficulty meeting your financial commitments, it may make sense for you to speak with a licensed trustee in bankruptcy. A bankruptcy trustee can provide you with the information you need to make an informed decision on your financial future.