Choosing a Licensed Insolvency Trustee
When you need to choose a trustee to file for bankruptcy in Canada, you might ask these questions:
How do I hire a Licensed Insolvency Trustee?
This question shows a common misunderstanding. Actually, you do not “hire” a trustee to work for you.
Yes, you do pick the trustee you are going to deal with (in most cases).
Yes, you will be making payments to the trustee.
But the trustee does not work for you.
Does the trustee work for my creditors (the people I owe money to)?
So, who does my Trustee work for?
A Licensed Insolvency Trustee is appointed by the Court to administer your bankruptcy. Their main job is to ensure that everything is done fairly, that both you and your creditors follow all bankruptcy rules.
How does this relationship work?
It is important to understand the relationship that will exist between you and your trustee.
A Trustee is similar to a referee in a hockey game. At the start of the game, the referee makes sure both sides understand the rules. At the start of your bankruptcy, your trustee will explain to you the duties and requirements of filing bankruptcy.
A hockey referee makes sure the players play by the rules. Your Trustee ensures that both your creditors and you follow the rules of bankruptcy or a consumer proposal. For example, once the bankruptcy starts, creditors are not allowed to garnishee your wages. If you don’t comply with your duties in a bankruptcy, your trustee will assign you a penalty.
That being said, trustees understand that you are going through a very stressful time, and they will deal with you in a compassionate manner. The fact that you are looking for a trustee is a good sign that you are ready to solve your financial problems and your trustee wants to help.
Then how do I choose a trustee?
Since you have found this article on our web site, your search is almost over.
Start by contacting a licensed trustee in your area. There is no risk to you, as your first consultation will be free of charge. Use that first meeting to:
- Ensure that you are comfortable with the people you will be dealing with.
- Ask questions about the bankruptcy process and rules and the trustee.
- Learn about the possible solutions for your own financial problems.
If you are uncomfortable with the trustee or dissatisfied with the answers you receive at your first meeting, you have the option to contact another trustee, before you sign any paperwork.
All of the trustees listed on this site will respond promptly to e-mailed questions, or you can call them and discuss your situation over the phone before booking a free consultation to review your options in more detail.