A Licensed Insolvency Trustee is licensed by the Office of the Superintendent of Bankruptcy to administer consumer proposals, bankruptcies, and receiverships. They work with debtors offering information and advice about both the proposal and bankruptcy processes. Their role is to ensure that both the debtor’s rights and the creditor’s rights are protected. Trustees have the highest level of training and education of all the debt consultants in Canada. Most have an accounting designation and a university degree, and they must complete and pass a rigorous three-year bankruptcy and law course. The RCMP investigates all trustees before being granted a trustee license, with mandatory ongoing professional development required for all practicing trustees. There are many reasons you might speak to a Licensed Insolvency Trustee, and a consultation is the first step to finding someone to assist with your debt issues.

When do I need a Licensed Insolvency Trustee?

You must use a Trustee if you are filing for bankruptcy, but they also provide other very important debt-related services, including:

• Debt counselling.
• Preparing proposals for creditors to avoid bankruptcy.
• Negotiating with your creditors.
• Debt settlement agreements.
• Referral to lawyers for independent legal advice with an insolvency lawyer.

Trustees can also work with you to help you avoid the need for bankruptcy. Trustees cost less than other types of consultants, as their fees are under regulation by the government. This makes them the best place to start if you are having debt issues and are unsure where to turn. They are the reliable professionals, who will help you find the best possible solutions and, in the case of bankruptcy, help get the ball rolling quickly.

How does a Licensed Insolvency Trustee protect me?

When dealing with Trustees, there are laws and ethics in place designed to protect you when using their services. You are protected by government regulations that are in place, as well as a strict code of ethics to which Trustees must adhere. There are also mediation mechanisms in place for disputes that protect your interests a bankruptcy.

What does a Licensed Insolvency Trustee do when filing for bankruptcy?

A Trustee assists with the following when you file for bankruptcy:

• They will explain your rights and the process involved.
• They will work with you to realize on any assets that are not exempt so that you can keep what you own (car and/or house) if you wish.
• They will determine based on your assets and your total household income how much money the bankruptcy will cost and how long the bankruptcy will last.
• They will distribute the money you have available to creditors at the end of the bankruptcy.

Where do Licensed Insolvency Trustees work?

When seeking a Licensed Insolvency Trustee, you can speak to bankruptcy firms. A Trustee is considered an officer of the court with a duty of care to their clients and all creditors involved in the insolvency process. As officers of the court, they are not “hired,” but instead chosen by their clients.

How do I choose a Trustee?

When choosing a Trustee, you want to find someone you feel comfortable with. You are not charged to see a Licensed Insolvency Trustee, aS they should provide a free initial consultation. You simply call the Licensed Insolvency Trustee to set up your consultation. That is why it is always advisable to call a Trustee as soon as you find yourself in more debt than you can afford to repay over the next 2-3 months. They can provide free advice and help you find the best solution for your particular situation.

What will a Licensed Insolvency Trustee do for me?

At your free consultation, a Licensed Insolvency Trustee will review your financial situation before determining how to proceed. They will assess your debt before deciding if you should file for bankruptcy or if a consumer proposal will be the best option. They will also consider other alternatives, as there are different ways to manage debt without taking drastic measures. In fact, many people find other options that will work for them without the need to file for bankruptcy or a consumer proposal.

A Trustee’s job is to provide guidance to debtors so they can find the best solutions and avoid the need to file for bankruptcy. This is why they should always be your first call. Other “counsellors” stand to make money from debt relief solutions and often will advise you to take the steps that will make them more money. Because a Trustee cannot charge for their consultation, you are better off to consult with them to find the options that are in your best interest.

Licensed Insolvency Trustees are paid through the proceeds of payments you will make once a consumer proposal or bankruptcy is filed. In most cases, they receive a percentage of the money you pay monthly based on the bankruptcy and insolvency general rules. Funds are held in trust, government and trustee fees are paid from the funds, and the balance goes to the creditors.

How do I know I am dealing with a Licensed Insolvency Trustee?

This is a crucial question. Although there are many people out there offering debt relief advice or services, you should always make sure someone is licensed by the federal government before working with them. You can ask for their licensed status, and if they cannot provide it, they are not a Licensed Insolvency Trustee. You can also visit the website of the Office of the Superintendent of Bankruptcy and search for a Trustee in your reason.

When researching, make sure the website has specified they are Licensed Insolvency Trustees. If you are uncertain, either move on to the next firm or ask. A Licensed Insolvency Trustee has access to the information and negotiation powers needed to protect your interests, whether it is an assignment in bankruptcy or a proposal to creditors. These procedures can only be made by a Licensed Insolvency Trustee.

Trustees can be trusted with your debt concerns, as they put their careers on the line when they make a mistake during the process. They can even lose their license depending on the severity and frequency of errors. They are held to a very high standard, both for their education and their performance.

Contact Charles Advisory Services at 416-486-9660 if you would like to set up a free consultation, or click here.