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Will the Licensed Insolvency Trustee have my best interest at heart?

I spoke with a debt relief specialist. She works for a fee but says she can negotiate better arrangements than if going to a Licensed Insolvency Trustee alone. Will the Licensed Insolvency Trustee have my best interest at heart? How does one ensure they have negotiated the fairest consumer proposal available?

One Response to “Will the Licensed Insolvency Trustee have my best interest at heart?”

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Doug Stuive, CA | Trustee | CIRP said...

A bankruptcy trustee is licensed by the federal government and adheres to a strict code of conduct that is outlined in Canadian legislation. They also must pass a detailed and lengthy course of study and exam process in order to receive their license and once licensed, their files are also monitored by that same federal government body. The type of company that you are considering would be a private company that operates outside of this legislation and does not go through this rigorous training process.

Trustee’s in bankruptcy rarely charge any up front frees. They will meet with you in person and will advise you on all options available to you, including pros and cons, costs, consequences and the process that would take place.

Trustee’s are not there to put someone into bankruptcy if a better option is available. One of the options they will look at is a consumer proposal. A consumer proposal will provide you with legal protection from your creditors, is guaranteed to stop the interest on the debt and can also reduce your overall debt by as much as 70 – 80% in many cases. The type of settlements that private companies offer can not make those guarantees and in fact collection activity and legal action often continue while you try to save up a suitable sum of money to offer as a settlement.

A licensed trustee is going to provide you with a detailed financial assessment and in fact there is legislation in place to make sure they provide you with your options. They are licensed trusted advisors that can help make sure you make the right decision for your circumstances.