December 18th, 2006 by Questions
What is the difference between a Licensed Insolvency Trustee and a Bankruptcy Lawyer?
December 18, 2006 at 9:09 am, A licensed trustee said:
A trustee in bankruptcy is licenced by the federal goverment to administer specific types of insolvency procedures under Canadian law. Most trustee are chartered accountants – in fact, it is not possible for a practicing lawyer to become a trustee.
A bankruptcy lawyer is a solicitor that has specialized in the area of insolvency law. If there are contested issues in a bankruptcy then a lawyer may be hired to make an argument on behalf of the parties involved.
In the vast majority of personal insolvencies in Canada, lawyers are not used.
The Canadian bankruptcy system has been designed to minimize the costs associated with filing bankruptcy so that as much money as possible may be returned to the creditors. By excluding lawyers except in the most contentious cases, the cost of bankruptcy is kept as low as possible.
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