What is a Bankruptcy Trustee?
If you are struggling with debt, there are options out there. One way to understand these options is by speaking with a Licensed Insolvency Trustee. This role was formerly known as a “bankruptcy trustee” and that is still a common term of the role.
What is a bankruptcy trustee? A trustee is a person who has received training and is licensed by the federal Office of the Superintendent of Bankruptcy to provide information on debt relief options and administer insolvency processes.
What does trustee mean? A trustee is a person who is legally able to administer certain financial matters. In the case of an insolvency trustee, they administer debt relief and insolvency processes.
What does a bankruptcy trustee do? Trustees are there to explain debt relief options and to help resolve issues between debtors and creditors. They are the only professionals in Canada that are able to administer insolvency processes like bankruptcies and consumer proposals.
What Does a Bankruptcy Trustee do?
Trustees provide people with information on debt relief options. They are required to give details on all possible options, not just the ones they administer. There are many debt relief solutions out there and each financial situation is unique. That means an option that works for one person may not be the right choice for someone else.
Bankruptcy trustee representation is important because financial matters can be very complicated. Working with a trustee helps you understand the options available to you so you can make the right decision for your situation. In addition, trustees are the only professionals that are able to administer bankruptcy and consumer proposal processes in Canada. Other countries may have situations where someone appoints a bankruptcy trustee or where you work with a lawyer, that isn’t the case in Canada. In Canada, you choose a trustee and they can administer the insolvency process, if this is how you decide to proceed.
When it choosing a bankruptcy trustee, one important thing to keep in mind is that most trustees do not charge for the initial consultation. This means you can speak with them without needing to pay. In addition, you shouldn’t have to pay a referral fee to speak with a trustee.
What Does Trustee in Bankruptcy Mean?
Debt relief options can be confusing and many find themselves unsure of what to do, wondering what is a bankruptcy trustee, or uncertain about how to proceed. This is why trustees are there. If you want to know what does a bankruptcy trustee do, the answer is that they provide information on debt relief options and they also administer insolvency processes.
For instance, if a person is unable to pay their debts when they become due, the trustee will review their financial situation and let them know all the possible options that could help resolve their situation. If the person decides that filing a consumer proposal or a bankruptcy is the right choice for their financial circumstances, the trustee will complete the necessary forms and administer the process.
What does trustee mean? It is someone who administers a financial process, like how a Licensed Insolvency Trustee administers insolvency processes.
How Much Are Bankruptcy Trustee Fees?
In most cases, the initial bankruptcy trustee meeting, often called the consultation, is provided at no charge. In addition, you do not have to pay a referral fee to speak with a trustee. It’s also important to know fees charged by trustees for their services are regulated by the government. This is a difference between them and other financial professionals, who are often unregulated.
If, after a bankruptcy trustee meeting, you decide to proceed with a consumer proposal or a bankruptcy, the trustee’s fees will be deducted from the payments made to your creditors. Again, these fees are regulated and trustees are not allowed to set their own rates.
What Happens During a Bankruptcy Trustee Meeting?
In other countries, there may be a situation where someone appoints a bankruptcy trustee to manage finances. This is not the case in Canada. In Canada, you may choose to attend a bankruptcy trustee meeting if you are struggling with debt and unable to pay your bills as they become due.
During the consultation, the trustee will review your financial situation and provide you with details on the available debt relief options. Trustees are required to provide information on all available options, not just the ones that they administer. This means you will get a full picture of possible solutions.
After a bankruptcy trustee meeting, you can decide how you would like to proceed. If you determine that filing a bankruptcy or consumer proposal is the right choice for you, the trustee will administer the process.
What Happens After a Bankruptcy Trustee Meeting?
After a bankruptcy trustee meeting, it is your decision as to how you will proceed. A trustee will never try to pressure you into choosing one option over another. It is always your decision. Then what does a bankruptcy trustee do? The trustee outlines the options and, if you decide that bankruptcy or consumer proposal makes the most sense for you, they will administer the process.
What Does Trustee Discharge Mean?
If you decide to file for bankruptcy, you must complete certain duties and stay in contact with the trustee. If you meet the conditions to be discharged from bankruptcy, the trustee will inform the court of this fact and you will be discharged from bankruptcy. If you have been dishonest or not completed your obligations, the trustee could request a conditional discharge, a suspended discharge, or even a refused discharge. The trustee can also apply to the court to be discharged from handling your situation.
If this happens, they will no longer administer your bankruptcy and your creditors may once again be able to pursue collection action against you again.
Who Does a Bankruptcy Trustee Represent?
If you’re curious about what does trustee mean or who the trustee works for, the answer is that they are required to protect the rights of both the debtor and the creditors. This means they will work to ensure a fair deal for everyone involved. This will be outlined to you during the bankruptcy trustee meeting.
Trustees are also there to make sure that any insolvency processes are handled according to the law, that all parties comply with their duties, and that the process is carried out in a timely and orderly manner.
Who Appoints Bankruptcy Trustees?
if you’re wondering who appoints a bankruptcy trustee in Canada, the truth is that people typically choose a trustee on their own. They may be referred to a trustee or recommended by another financial professional, but deciding to work with a trustee is an individual decision. If you’re struggling with debt and not able to pay your bills as they become due, you can choose to arrange a consultation with a bankruptcy trustee/Licensed Insolvency Trustee.
How to Choose a Bankruptcy Trustee
Trustees are licensed by the federal Official of the Superintendent of Bankruptcy and required to follow a strict code of ethics. When you work with a trustee, you are working with an experienced individual who has received training and who is working in a regulated position.
However, when it comes to choosing a bankruptcy trustee, while it’s important to work with someone who has skills and experience, it is also important to choose someone who you can get along with and communicate with effectively. You will likely need to have a lot of communication with the trustee, so it’s a good idea to work with someone who you feel comfortable with.
For instance, if you decide to begin an insolvency process (such as filing for bankruptcy or consumer proposal), you will need to be in regular contact with the trustee. That’s why it’s very important to not just choose someone you can trust, but also that you work with someone with whom you get along with, trust, and can effectively communicate.
Bankruptcy trustee representation is a serious topic as the decisions made when working with a trustee will affect your financial future.
One of the best ways to find a trustee that you feel comfortable with is to arrange for a free consultation. When you speak with the trustee, ask them any questions you may have and make sure you can communicate with them effectively. The consultation can help you understand your options, but it is also a great way to see if there is a “fit” between you and the trustee.
Schedule a Free No Obligation Appointment Today
When it comes to choosing a bankruptcy trustee, we are here for you. Our team is dedicated to helping people resolve their debt problems and find a way to live debt free. Contact us today to arrange for a free, no-obligation consultation. During this appointment, we will review your financial situation, provide you with details on the options that are available to you, and answer any questions you may have.
Wondering what is a bankruptcy trustee and what they do? We can help you understand. Want to know more about the pros and cons of various debt relief options (including consumer proposals and bankruptcies)? We can give you all the information you need. We’re here for you.
At Farber, we take bankruptcy trustee representation very seriously. Contact us today.