Do I Need a Licensed Insolvency Trustee or a Bankruptcy Lawyer?
In Canada many people wonder “Do I Need a Licensed Insolvency Trustee or a Bankruptcy Lawyer” when they are considering a way to get out of debt.
In Canada, only a Licensed Insolvency Trustee (Trustee in Bankruptcy) can file a bankruptcy or a consumer proposal for a debtor so the answer to the question “Do I Need a Licensed Insolvency Trustee or a Bankruptcy Lawyer?” is almost always that you need to use a Trustee.
In the vast majority of cases you do not need to retain an Insolvency Lawyer if you are considering bankruptcy or a consumer proposal.
Insolvency Lawyers can give advice on bankruptcy matters but will have to refer you to a trustee if a bankruptcy or a consumer proposal is the best way for you to get a fresh financial start.
Licensed Insolvency Trustees will if they feel you have a contentious issue, refer you to an Insolvency Lawyer.
Trustees have a very strict and rigorous code of ethics and are also regulated by the Office of the Superintendent of Bankruptcy.
This further motivates trustees to refer you to an Insolvency Lawyer if they feel you need one.
If you have a very complicated financial issue and a lot of money at stake then, it would be prudent for you to retain an Insolvency lawyer as added protection and to give you the peace of mind that you have received an expert second opinion on what course you should take to resolve your financial problems.
Another reason you might want to retain an Insolvency Lawyer is if you have issues that might have walked a fine line between right and wrong pertaining to the Bankruptcy and Insolvency Act. For example, an Insolvency Lawyer can represent you at a Creditors’ Meeting and advise you if you should answer certain questions posed.
An Insolvency Lawyer can also represent you if the Office of the Superintendent of Bankruptcy elects to question you.