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Bank Accounts

Do Licensed Insolvency Trustees have easy access to a bankrupt’s financial activities, i.e., thru banks?

Posted from: British Columbia

One Response to “Bank Accounts”

A licensed trustee said...

Yes, they do. When you file an assignment in bankruptcy your trustee “steps into your shoes” from a financial perspective. It is as if anyone who has ever had a financial dealing with you dealt with the trustee. You do not have the right to keep any financial transactions private. This is part of the law – if you want relief from your debts then your creditors are entitled to look at any aspect of your financial life they want to.

From a practical standpoint, most people are subject to a cursory review – the bankruptcy system assumes people are honest and will disclose everything that they are required to disclose. Having said that, trustees have very powerful investigative rights. If your trustee wants to look into something further they have every right to do so…