A Licensed Insolvency Trustee is a person who has been licensed and is regulated by the federal government to administer bankruptcy proceedings. An Insolvency Trustee is also able to review your financial situation and provide you with information on the options that are available to you that will allow you to eliminate your debt. Insolvency Trustees are also able to arrange a consumer proposal and present it to your unsecured creditors.
As you can see, there are a number of services that Insolvency Trustees provide. If you are experiencing financial difficulties and are unable to pay your bills as they become due, it is often a good idea to speak with an Insolvency Trustee. Most trustees provide a free consultation where they can review your financial situation and help you understand the options that are available to you. This can make it easier for you to decide which option is the right one for you.
In addition, Insolvency Trustee fees are set and regulated by the federal government. This means that working with an Insolvency Trustee is often less expensive than working with financial professionals.
An Insolvency Trustee is licensed by the Office of the Superintendent of Bankruptcy. The role of a trustee is to ensure that the rights of all parties are respected. This means that the trustee will work with you to ensure that your rights are not abused and will do the same for your creditors. This ensures that whatever debt relief program you choose will be carried out fairly and in accordance with the law and the Bankruptcy and Insolvency Act of Canada as required.
Responsibilities of an Insolvency Trustee
As mentioned, an Insolvency Trustee has many responsibilities and duties. These include, but are not limited to:
- Reviewing your financial situation and providing you with information regarding the options and alternatives that are available to you.
- Preparing documents for bankruptcy and consumer proposal filings and ensuring that these documents are properly filed.
- Communicating with your creditors. If you file for consumer proposal or bankruptcy, all communication with your creditors will be handled by your trustee.
- An Insolvency Trustee is also responsible for ensuring that all claims that your creditors make regarding your debts are valid.
- If you file for bankruptcy or consumer proposal, your Insolvency Trustee will ensure that you receive mandatory credit counselling services.
- If you file for a consumer proposal, your Insolvency Trustee will collect your monthly payments and distribute them to your creditors.
- If you file for bankruptcy, your trustee will review your assets and ensure that you are able to keep the assets that are considered exempt in your province.
These are just some of the duties and responsibilities associated with being an Insolvency Trustee.
Working with a Insolvency Trustee
If you are having financial issues and difficulty paying your debts, an Insolvency Trustee can help you understand the available options. Trustees are highly educated and must go through professional training in order to receive a license, so you can trust them to handle your financial situation with experience and care. They understand a variety of different debt relief methods, so you can be assured that they will explain all of the available options to you, not just the one or two options that they are most familiar with.
Working with an Insolvency Trustee ensures that you receive the greatest opportunity to eliminate your debt in a way that is beneficial for both you and your creditors.
Two options that you may be presented with by an Insolvency Trustee are consumer proposal and bankruptcy. Both of these options are legal processes that allow you to receive protection from your creditors. With a consumer proposal, you submit an offer to your unsecured creditors that sees you pay back a portion of what you owe over a specific time period. Once all payments have been made, your remaining outstanding debt is forgiven. In a bankruptcy, you are given a legal process that allows you to eliminate most – if not all – of your debts. An Insolvency Trustee can help you understand these options so that you can make an informed choice for your situation.