What Are The Duties of a Licensed Insolvency Trustee?
When your debts have mounted to the point where you are no longer able to repay them, this is known as insolvency.
When you are insolvent, however, you still have a number of options available to you such as making a Consumer Proposal or filing for Personal Bankruptcy.
To do either of these, however, you need the help of a Licensed Insolvency Trustee.
These highly knowledgeable professionals were previously known as “Trustees in Bankruptcy” or “Bankruptcy Trustee”, however, this was changed in December of 2015 to Licensed Insolvency Trustee.
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Because they can help debt-stricken Canadians with much more than filing for Bankruptcy.
Here we’ll look at the duties you can expect them to perform for you, the court and your creditors when you are insolvent.
The role of a Trustee
In brief, the role of a Trustee is to ensure that both the person who is insolvent and their various creditors are treated with fairness.
They are a licensed officer of the court and an independent administrator.
Because they work neither for the insolvent party nor their creditors they can remain impartial while ensuring that everyone gets the first possible deal.
In a Consumer Proposal
When an insolvent person chooses to pursue a Consumer Proposal, the Licensed Insolvency Trustee acts as a Proposal Administrator.
Their duties are to advise on whether or not this is a viable and optimal course of action for your and look closely at your finances to help you make a proposal that will be appealing to your creditors while also making your debts more manageable.
They will negotiate with your creditors on your behalf, deal with creditors so you don;t have to, collect and remit proposal payments and eventually close your file.
If you choose to file for Bankruptcy, the Trustee has a number of duties that begin prior to filing and during the process.
They can help you to avoid needing to go to court and ensure that you fulfil your duties within the first 9 months so you can get an automatic discharge.
Bankruptcy can give you the fresh financial start that you deserve.
But it is a serious process that’s not to be entered into lightly.
They will meet with you personally, review your finance and circumstances and explain your available options.
They will explain how the process of Bankruptcy works in Canada, and answer any questions you may have.
Once you’ve begun the process of declaring bankruptcy, they can set up all the official paperwork and notify your creditors.
This will help to prevent or stop punitive measures like salary garnishment or the freezing of bank accounts.
They will act as an intermediary between you and your creditors and chair any meetings necessary to discuss your Bankruptcy.
They also have a duty to ensure that bankrupts fulfil their own duties.
- Providing all the information needed to file your pre-bankruptcy and post-bankruptcy tax returns;
- Submitting your monthly income and expense reports, with paystubs and receipts for expenses;
- Making all necessary payments to the state;
- Attending two mandatory Credit Counselling sessions;
- Reporting all of your assets and providing any documentation they request that will help to value them;
- Keeping your contact information up to date, and informing your Trustee if you move or change your contact number.
In the unlikely event that your Bankruptcy goes to court, they can also attend your hearing with you and provide advice on the day, as well as ensuring that you’re as prepared as possible for your day in court.
How we can help
At Bankruptcy Canada, we’ve been helping Canadians from all walks of life to escape their debt demons since 1999.
To date, we’ve helped over 200,000 people just like you to escape the financial and logistical stranglehold that their debts have placed on them, and to live 100% debt-free.
We can help you to find a Licensed Insolvency Trustee near you.
Unlike a Credit Counselling service, a Licenced Insolvency Trustee can inform you of all your available options so you know for sure that you’ve made the right choice.
If you’d like to know more about any of our services, call us today on (877)879-4770.
A member of our team will be happy to arrange a risk-free, zero-obligation and 100% confidential callback.