What is a Licensed Insolvency Trustee?
(Prior to April 2016 known as a “Bankruptcy Trustee”)
A Licensed Insolvency Trustee is an individual who has been licensed by the Superintendent of Bankruptcy to administer to bankruptcy and consumer proposals who will manage assets involved in the insolvency in a trust.
The bankruptcy trustee is responsible for the debtor’s rights and the creditors’ rights and guiding the debtor through the bankruptcy process or the consumer proposal process.
The trustee is responsible for the debtor’s rights and the creditors’ rights and guiding the debtor through the bankruptcy process or the consumer proposal process.
How Can a Licensed Insolvency Trustee (“LIT”) Help?
When you schedule a risk-free bankruptcy evaluation with a LIT in your area they will sit down with you to get a full understanding of your unique financial challenges so they can give you the best advice based on their unique money problems.
The trustee will help you explore bankruptcy, making a proposal to your creditors, or any other bankruptcy alternatives that would work for you.
The LIT will happily answer all of your questions in a friendly and respectful manner and help you understand the benefits and drawbacks of each option so you can make an informed decision.
A trustee will guide you through the entire bankruptcy process and during your bankruptcy, or proposal, will ensure that you complete all the required bankruptcy duties and will provide you with the two required counselling sessions.
You must use the services of a trustee to file an assignment into bankruptcy as no other debt relief expert can help you file bankruptcy and you can’t file bankruptcy on your own.
Bankruptcy is a complex legal process so it is important that you seek out professional financial advice from a Licensed Insolvency Trustee. The trustee will guide you through the entire bankruptcy or proposal process to make sure everything is handled properly, efficiently and that you receive your automatic bankruptcy discharge (usually in 9 months).
How Am I Protected By Using a Trustee?
A trustee is the only debt consultant in Canada who is licensed and regulated by the Canadian government. They are also the most highly trained, educated and ethical debt relief experts.
In order to get their trustee license, a LIT must pass a 3 year course in bankruptcy and law and must be investigated by the RCMP. They must also complete ongoing professional training and development.
The trustee will help you complete all of the required bankruptcy duties, which are required to be completed to get your discharge from bankruptcy, which is required to have your debts eliminated.
The trustees fees are regulated by the government so a trustee is likely going to provide the cheapest and quickest way to get out of debt.
If you have any disputes with the trustee there is a mechanism in place to handle these.
What is the job of my Trustee?
Your trustee will be responsible for collecting any of your non-exempt assets and selling them and then distributing the funds received from selling those assets to your creditors.
Trustees are also not just for filing for bankruptcy as they are professional debt consultants that can provide a full range of financial options such as:
- Administering to a consumer proposal to your creditors (they are known as a consumer proposal administrator in this case);
- Negotiating with your creditors on your behalf;
- Providing debt counselling.
In some cases the trustee will determine that you don’t need the services of a trustee and will advise you to another expert, such as an insolvency lawyer.
If you are trapped in debt, are facing collection calls or are worried about your wages being garnished we recommend contacting a professional Licensed Insolvency Trustee to schedule a free consultation that is confidential to go over all of your options.
The meeting is free, confidential and there is no obligation to proceed with the trustees’ services.
The main job of the trustee is to help you find the right solution for you and your unique financial problems.