What is a Trustee?
A bankruptcy trustee is the most highly educated debt consultant you can speak to in Canada. Trustees in Canada are licensed by the Federal Government to help assist debtors the proper way.
In Canada, our insolvency laws are written in such a way as to minimize the use of Lawyers and Court. A Trustee works with you, your creditors, and the courts and will explain all of your debt relief options, not JUST Bankruptcy.
At your Consultation, your trustee will ask you for some information to evaluate your situation to help determine whether or not filing for bankruptcy is right for you. If not, there may be other options which better suit your needs. Click Here to find a Licensed Insolvency Trustee.
What does a Trustee do?
The purpose of an initial consultation with a Trustee, is to assess a debtors options, explain how each option will impact the debtor and answer any questions. Most firms will offer a FREE consultation.
Sign the Statutory Bankruptcy Documents
If you decide to proceed with bankruptcy the trustee will help prepare the necessary bankruptcy documents to be signed and filed with the Official Receiver. (Please Note: You are not bankrupt until these documents are signed and filed.)
Stay of Proceedings.
Once the Bankruptcy documents are filed a stay of proceedings is in place to protect you from your creditors. A Stay of Proceedings acts as a legal wall to stop those harassing phone calls – Creditor harassment, Collection Proceedings, Garnishments and even Interest.
Mail Notice to the Creditors
When the trustee receives confirmation from the Official Receiver the bankruptcy documents were filed the trustee mails notice of bankruptcy to the creditors.
Meeting of Creditors
The creditors have the right to request a meeting with the Trustee and Debtor. If a meeting of creditors is requested the trustee will schedule the meeting, and send notice to all parties advising of the date, time and location of the meeting. (The vast majority of bankruptcies do not have a meeting of creditors requested.)
Duties of Bankruptcy
Bankrupt’s are required to comply with their duties in order to qualify for a discharge from bankruptcy. The duties of a Bankrupt are discussed in the next section.
Discharge from Bankruptcy
A discharge from Bankruptcy is the process of getting out of bankruptcy, which releases a bankrupt from their debts. A first time bankrupt will be eligible to receive an automatic discharge at the expiration of nine months, which could be extended if the bankrupt’s income is over the superintendent’s monthly income guidelines. A Second time bankrupt would be eligible to receive an automatic discharge at the expiration of twenty-four months, which could be extended if the bankrupt’s income is over the superintendent’s monthly income guidelines. It should be noted that an individual bankrupt who refuses or neglects to receive the required counselling sessions will not qualify for an automatic discharge.