Can a Bankruptcy Trustee Help You?
If you are in financial difficulty and struggling to pay your debts as they become due, you could benefit from speaking with a bankruptcy trustee. Also known as a licensed insolvency trustee, this is a person who has been licensed by the federal government to review personal finances and provide individuals with information on the options available to them.
A bankruptcy trustee is licensed by the Office of the Superintendent of Bankruptcy and is authorized to administer bankruptcy and proposal estates under the Bankruptcy and Insolvency Act of Canada. This Act is a federal statute governing bankruptcy and insolvency in Canada. It is applicable to all provinces and territories.
If you are experiencing financial issues, money troubles or are unable to handle your debts and financial obligations, a bankruptcy trustee may be able to help you. Trustees require no upfront fees and offer free consultations. In a bankruptcy there is a small standard bankruptcy fee unless there are assets or income payments to be made. These are regulated by the government. In addition, consumer proposal fees are also controlled by the federal government and the Bankruptcy and Insolvency Act. And these fees are included in your monthly payment. This means that there are no hidden fees or costs to you.
Trustees in bankruptcy undergo many years of training and must follow a strict code of ethics. Bankruptcy trustees always ensure that your rights as well as the rights of your creditors are protected and respected. They are required by law to discuss all options for debt relief with you.
Some people assume that, due to the name, a trustee in bankruptcy can only assist in filing for bankruptcy. This is untrue. Bankruptcy is only one option that may or may not be applicable in your situation. A bankruptcy trustee can help you understand the other options that may also be available to you.
Options a Bankruptcy Trustee May Present to you
The options for eliminating your debt presented by your bankruptcy trustee will depend on your particular financial situation. However, some options that may be presented include:
- Bankruptcy is a situation where honest but unfortunate debtors who are unable to meet their financial obligations are provided with a legal process that allows them to eliminate their debts. If you decide to file for bankruptcy, a bankruptcy trustee will help you understand the entire process and make sure that all necessary forms are completed and filed. He or she will also make sure that your assets are correctly handled and that any exemptions are taken into account.
- A bankruptcy trustee will also review your monthly income and expenses during bankruptcy and determine if any surplus must be paid to your creditors.
- All communication with your creditors will be handled by the bankruptcy trustee during the bankruptcy process. All legal action against you stops when you file for bankruptcy as does any wage garnishment that may be in place.
- A consumer proposal is a legal process where a person makes an offer to his or her unsecured creditors to pay less than the total amount due over a period of time. The amount paid depends on the individual and his or her unique financial situation. Once the proposal is agreed to, the remaining outstanding debt is discharged by the terms of the proposal.
- When the proposal is prepared and submitted to all unsecured creditors, these creditors vote on whether to accept it. If the majority of a person’s creditors decide to accept the proposal, all are bound by its terms.
- During the proposal, the debtor makes regular monthly payments to the bankruptcy trustee who then distributes these payments to the creditors.
- As with bankruptcy, you receive legal protection from your creditors once your proposal is submitted. All contact is made through your bankruptcy trustee and any legal actions or wage garnishment that was started against you must stop.
Bankruptcy, consumer proposal and other financial solutions are complex legal processes that can often be confusing. Only a trustee in bankruptcy can file a consumer proposal or bankruptcy. By working with a trustee, you will find the situation easier to handle. A bankruptcy trustee can help you understand and navigate these legal processes. If you are having financial issues and are unable to meet your financial obligations, you could benefit from speaking to a bankruptcy trustee.