Bankruptcy in Canada: What Is The Role Of An Insolvency Trustee?

Licensed insolvency trustees, formerly known as trustees in bankruptcy, are people who are professionally licensed and regulated by the Office of the Superintendent of Bankruptcy Canada.

This license allows them to provide a valuable service to people in Canada.

By law, people who are filing for bankruptcy must work with a licensed insolvency trustee.

Trustees are among the most well-trained, highly educated debt specialists in all of Canada.

All trustees hold a university degree as well as an accounting designation.

That’s not all that is required to gain a trustee license; however, all potential trustees must complete an all-encompassing course and be investigated by the Royal Canadian Mounted Police before being accepted for a role as a trustee.

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The Role of an Insolvency Trustee

In simple terms, an insolvency trustee has two main jobs during the bankruptcy process.

The first thing they are tasked with is to help sell a debtor’s property – if required.

A common example of this is would be to sell a house.

The trustee would sell the house on behalf of the debtors and use the money to repay the people or businesses that the debtor owes money to.

The other task that trustees are usually required to do is distribute any recovered money to creditors at the end of the entire bankruptcy process.

However, as insolvency trustees are professional debt consultants, they manage a lot more than the two main points mentioned above.

As they are professional debt consultants, they provide counsel on debt management – particularly handy as bankruptcy can often be an incredibly traumatic process.

Trustees also help draft consumer proposals for creditors, as well as negotiate informal debt settlements that are satisfactory for all parties involved.

How an Insolvency Trustee Can Help You

Going through the bankruptcy process alone is not a viable option.

An insolvency trustee is the only professional permitted to commence government-regulated insolvency proceedings.

These proceedings are an essential part of the bankruptcy process as they allow you to be excused of your debt.

A licensed insolvency trustee will guide you through the entire process, explaining everything along the way and ensuring the process remains as straightforward and stress-free as possible.

Working with a trustee allows you to get the best possible result and appease as many creditors as possible.

Once you have enlisted the services of an insolvency trustee, you benefit from having an industry-leading professional work with your creditors on your behalf.

Doing this results in the best possible outcome for you.

There will be no threat from further action from creditors or future wage garnishments.

Also, there will be no threat of legal action or collections from unsecured creditors.

Why are Insolvency Trustees the Best Option?

Insolvency trustees are truly the best of the bets when it comes to debt relief specialists.

Trustees are regulated by the government, as such, you pay considerably less than when you use the services of generic debt relief agencies.

Insolvency trustees have an extremely high standard of ethics that they adhere to at all times.

They also are required to demonstrate an extremely high level of skills and experience to even earn their license from the Office of the Superintendent of Bankruptcy in the first place.

Why Work with an Insolvency Trustee?

Insolvency trustees provide you with a full range of services related to insolvency proceedings.

Whether its bankruptcies or consumer proposals, trustees are the best choice for individuals who are suffering times of severe financial hardship.

Management of communication

It’s safe to say that you probably have enough on your mind when you’re about to become bankrupt.

Working with an insolvency trustee takes all the effort out of the proceedings as they deal with creditors on your behalf.

They also prevent you from being contacted by creditors in the future.

The Very Best in their Industry

Insolvency trustees operate at the very top of their niche and provide the best service available in Canada.

They have worked extremely hard to reach the position they are in and the role they hold, and as such, should always be the first person you contact if you’re about to start the bankruptcy process.

Acquiring a licence from the Office of the Superintendent of Bankruptcy is a challenge in itself and only the very best in the industry get the chance to become an insolvency trustee.

Regulated by the Government to Ensure Fairness

Insolvency trustees are heavily regulated by the Office of the Superintendent of Bankruptcy and are legally required to meet federal standards of practice.

They are also required to meet the Code of Ethics for Trustees, legislature that ensures trustees perform appropriately.

The fees that are charged for an insolvency trustee’s services are also regulated by the federal government meaning there is a general uniformity of the prices that one can expect to say.

It’s a general rule of thumb that the first consultation with an insolvency trustee is free of charge.

Easy to find when you need them the most

Canadians are lucky enough to benefit from access to the Licensed Insolvency Trustee registry to help them easily locate an insolvency trustee in the area near them.

There are insolvency trustees available in all of Canada – even the most remote areas.

The service that they provide is so valuable that they can be easily found wherever you live.

If you’re in need of the services of an insolvency trustee, you’ll easily find one nearby.

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