If you are having trouble paying your debts as they become due, you may wish to speak with a financial professional for assistance. One person who may be able to help you is a Licensed Insolvency Trustee. These are individuals who have been licensed by the federal government and are regulated under the Office of the Superintendent of Bankruptcy. Trustee in bankruptcy duties include administering bankruptcy and proposal estates as well as reviewing financial situations and providing you with information on the available options. Many people assume that, because of the name, trustees in bankruptcy can only help you file for bankruptcy. This is not true. Insolvency Trustees are bound by a strict code of ethics and are required to provide you with information on all available options for debt relief, not just those services that they offer. In addition, a trustee in bankruptcy can also work as a proposal administrator on a consumer proposal. Bankruptcy is not your only option when meeting with a trustee. Once you are presented with the available options, it is your decision as to how you would like to proceed. While trustee in bankruptcy duties include informing you of your options, the choice as to how to proceed is always up to you. A trustee will not try to convince you to select one option or another or pressure you into choosing a debt relief option that you are not interested in.
The Duties of an Insolvency Trustee in Bankruptcy or Consumer Proposal
If, after meeting with the trustee and reviewing all of your options, you decide to file bankruptcy or consumer proposal, your trustee will assist you in filing all of the required forms. These can then be submitted electronically. In the case of a bankruptcy, the trustee will review your situation, family size, income and other factors and then use this information to determine the cost of your bankruptcy i.e. what funds are available for distribution to your creditors. If you decide to file a consumer proposal, the trustee will use your financial situation to calculate what a fair offer to your unsecured creditors will be.
The trustee will then send this offer to your creditors. They will have 45 days to vote on whether or not they choose to accept your offer. During the bankruptcy or consumer proposal process, the trustee will perform various administrative duties. These include collecting all payments that you are required to make and distributing them to your creditors as required. Your trustee will also be responsible for all communication between you and your unsecured creditors.
When you file for bankruptcy or consumer proposal (and your proposal is accepted), your unsecured creditors are not legally able to contact you or send any collection agencies after you. They are also not able to take any legal action against you or garnish your wages. Your trustee will explain this legal protection to you before you file. Another one of the trustee in bankruptcy’s duties is to ensure that you fulfill all of your requirements. This includes attending two financial counselling sessions.
When you file for bankruptcy or a consumer proposal, you are required to attend two financial counselling sessions. The goal of these sessions is to provide you with budgeting and money management information so that you can avoid getting into financial trouble in the future. These sessions will also give you details on the steps you can take to rebuild your credit report when the consumer proposal or bankruptcy process has been completed.
Debt Relief Solutions
If you are struggling with debt and finding it difficult to pay your debts as they become due, it makes sense to speak with a financial professional who can help you. Most trustees in bankruptcy provide a free consultation where they can review your financial situation and inform you of the available options. This consultation will give you the details that you need to make an informed decision for yourself and your financial future. Among the trustee in bankruptcy duties is a requirement to provide you with information on all possible options. This is an advantage to speaking with an Insolvency Trustee that is not available with some other types of financial professionals. The more information that you have on the options, the more likely you will be to make the right choice for your situation.