3 Statements That Make Trustees Sound Scary

There are many falsehoods spoken about trustees, often made to make them sound scary.

Statement #1 to Provoke a Fear of Trustees: A Trustee doesn’t work for you, he or she works for your creditors

I get annoyed by this every time I hear the phrase. To say a Trustee is working for one party would mean that they are working against someone else. The fear expressed above is based on the belief that the Trustee is using deceitful tactics to disadvantage you, which is why you require legal representation and an advocate who will defend your rights. I will always refer individuals who have committed fraudulent or illegal behavior to a lawyer, but those who are honest and unfortunate debtors do not require legal assistance.

The Trustee is not responsible for representing any one party in an insolvency case, but rather has a responsibility towards all parties involved, including the debtor, creditors, the Office of the Superintendent of Bankruptcy, and the Court. According to the Code of Ethics for Trustees, which is part of Rule 39 of the Bankruptcy and Insolvency Act, a Trustee must be free from any form of prejudice towards or against any particular side or party. “The following is the text that I have chosen to use.

It is apparent that a Trustee doesn’t work for the debtor, but their valuable contributions make it so comforting and positive that many people feel they’ve had sway over their life.

A Trustee can offer assistance in a variety of ways, including conducting unbiased and confidential information sessions for individuals who are uncertain about their options.

Statement #2 to Provoke a Fear of Trustees: A Trustee will always urge you to file for bankruptcy.

If my job was to promote bankruptcy, I would have wasted a lot of time in the role of Trustees as they are too dynamic and unreliable.

The Bankruptcy and Insolvency Act’s Directive 6R3 mandates that a Trustee discuss both formal (bankruptcies and proposals) and informal options (consolidation loans, informal debt management plans, etc.). ) The Trustee is tasked with evaluating whether a consumer proposal is viable as an alternative to bankruptcy when dealing with an insolvent debtor. Government statistics indicate that proposals constituted 45% of consumer-filed formal insolvency proceedings in 2014. It is evident that Trustees played a role in helping nearly half of the debtors who were already insolvent avoid bankruptcy during an official indebted proceeding. A Trustee is the only person who can administer a formal proposal to creditors, even though non-Trustees may misrepresent their abilities by misleading advertisements.

If the Trustee recommends going bankrupt, it is a professional opinion that has been evaluated thoroughly and not provided as merely an in-house recommendation. The Trustee will not take that advice lightly. If there are other choices, the Trustee will disclose those options to you. Our daily routine involves helping a debtor avoid bankruptcy, which is one of the most thrilling activities for Trustees.

Statement #3 to Provoke a Fear of Trustees: A Trustee may disclose your secrets.

I find it irritating when I have to deal with someone who asks me about confidentiality and I am willing to share their last name. Despite this, trust officers are bound by confidentiality regulations even when discussing financial matters without family or friends’ knowledge.

The Code of Ethics for Trustees, which includes Rule 40 of the Bankruptcy and Insolvency Act, prohibits Trustees from disclosing confidential information to the public about their professional engagements, unless it is 1) required by law or 2) approved by the person providing the confidential data. CAIRP’s Professional Conduct Rules for Trustee members state that they must maintain a duty of confidentiality to their clients and refrain from exploiting or sharing any information obtained during an engagement. Furthermore, there are local and national regulations regarding the safeguarding of personal data, and most organizations have established policies on this matter.

In a bankruptcy or proposal proceeding, it is necessary to disclose certain information to specific parties, particularly the Office of the Superintendent of Bankruptcy and creditors of that debtor. The Trustee will provide guidance on the sharing of information and the individuals with whom it will be shared. I enjoy sharing my personal information with others, but my busy schedule prevents me from doing so.

If you hear or read the fear statements above, ask yourself what they are selling to you and what does it gain from that. It is likely that they do not want you to see a Trustee, even if it’s advantageous, because they are trying to sell you something. It is common for the products being sold to direct you to a Trustee.

A Trustee who is licensed demonstrates expertise, thorough training, and strict discipline. Only trustees are authorized to legally handle bankruptcy and consumer proposal proceedings. Contact us for further information on how a Trustee can be of assistance to you or someone else.

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