Canadian law regarding a Trustee’s responsibilty

September 26th, 2011 by Questions

Is Trustee required under law to get the debtor to pay back as much as possible to the creditor? In other words…is the Trustee by law the creditors advocate?

Posted from: Ontario

Questions

One Response to “Canadian law regarding a Trustee’s responsibilty”


September 26, 2011 at 11:35 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Not at all. The trustee is an Officer of the Court, meaning they are court appointed official who has a duty of care to both the creditors and the debtor. What the trustee must do is ensure that the legislation is followed. So, if you do not complete your duties in a bankruptcy, the trustee is obligated to oppose the discharge and make sure the court is aware. However, if your creditors do not have the proper documents in place for them to have a valid claim in your bankruptcy, then the trustee is equally obligated to ensure that their claim is disallowed and they are not eligible for any potential disbursements that would otherwise accrue to the creditors.

So the trustee is nether an advocate for the creditors nor an for the debtor. They are a 3rd party that is responsible to ensure the integrity of the insolvency system is upheld.

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