Trustee consultation prior to bankruptcy
Mine is a pretty complicated situation with a debt of 200K , shareholdings in 2 corporations with property , loans by the corporations to me , cash transactions between me and the corporation , etc.
I want to have a discussion with a trustee regarding a potential bankruptcy but I do understand that a trustee is an officer of the court acting on behalf of the creditors and as such do not want to make him privy to any information which cannot be obtained in a normal examination. So I want to deal with two trustees: One the official Licensed Insolvency Trustee paid by the estate and the other acting not as a trustee but as a paid consultant to the corporation with whom I discuss all issues BEFORE declaring bankruptcy.
Is it unethical or illegal for a trustee to act as a consultant to a debtor whose bankruptcy is being handled by another trustee? If I do hire a trustee to act as a consultant should I divulge this information to my Licensed Insolvency Trustee?
Posted from: Ontario
There is nothing wrong with what you suggest as long as you make complete disclosure to the second trustee (the one that will actually handle your bankruptcy).
I should warn you that the hourly rates for consulting are high – you might be better off with an insolvency lawyer as opposed to a trustee (it will be less expensive too).