What is a bankruptcy trustee?

A Bankruptcy Trustee is a professional who is licensed by the Canadian Federal Government supervise all aspects of the Bankruptcy and Insolvency Act, including bankruptcies and consumer proposals.

As defined by the Superintendent of Bankruptcy a licensed trustee is responsible to “administer proposals and bankruptcies and manage assets held in trust. The trustee can give a debtor information and advice about both the proposal and bankruptcy processes and make sure that both the debtor’s rights and the creditor’s rights are respected.”

Why do I need the help of a Canadian Bankruptcy trustee?

The filing of a bankruptcy or consumer proposal is a complicated legal process. As a result, if you need to file a proposal or make an assignment in bankruptcy you will need to contact a licensed trustee. This trustee has under gone significant training to become familiar with all aspects of the insolvency system and the options available to a consumer debtor struggling with debt. Almost all trustees have an accounting designation, a university degree or both. In addition, they have had to successfully complete a demanding 3 year program done through the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), approved by the federal government.

All of this means that a licensed trustee is the most qualified person to talk to concerning your debts. They are adept at analysing situations, identifying existing pitfalls, options to deal with these pitfalls, developing strategies going forward and helping you to understand the advantages and disadvantages of each of the available options.

If you are considering the filing of a bankruptcy

The best thing you can do is to contact a bankruptcy trustee in your area. They will quickly be able to help you determine if a bankruptcy or a consumer proposal will work in your situation and if not they will be able to assist you in determining what the proper action is. Remember, each trustee through the Canada-bankruptcy network will provide a free no-obligation assessment designed to answer all your questions.