What is a Bankruptcy Trustee?
If you are unable to pay your debts as they become due, speaking with a bankruptcy trustee can be very beneficial. But what is a bankruptcy trustee? Many people are unfamiliar with what exactly a bankruptcy trustee is and how trustees are different from other financial professionals. Here is some information on bankruptcy trustees that can help answer these questions.
A bankruptcy trustee is a person who is licensed by and registered with the federal government. Trustees receive many years of training and are legally able to administer bankruptcy and consumer proposal processes. In addition, a bankruptcy trustee is able to review a person’s financial situation and provide him or her with details on the debt relief options that are available. Trustees are required to provide information on all possible options, not just those that they are able to assist with.
Trustees in bankruptcy are licensed by the Office of the Superintendent of Bankruptcy. One primary job of a trustee is to ensure that the rights of all parties are respected. Trustees work to make debt resolution fair and legal for both the debtor as well as his or her creditors.
This is different from many other financial professionals. Other professionals may not have the knowledge or the information needed to offer details on all available options. Instead, they may stick to options that they are familiar with or comfortable with. This could cause you to miss out information that could help you make a better decision for your financial situation.
Working with a Bankruptcy Trustee
Most trustees offer the initial consultation for free. In this consultation, the trustee will review your financial situation and provide you with details on the available options. Each person is different and each different person has different financial circumstances. Trustees understand this and, therefore, they work to provide you with details on the processes that could work for you.
That said, the final decision as to how you would like to proceed is always entirely up to you. Your trustee will give you the information that you need to make the decision, but he or she will never pressure you into choosing one particular option over another. This decision for your financial future is always 100% yours to make.
Other Bankruptcy Trustee Responsibilities
In addition to reviewing your situation and providing you with details, bankruptcy trustees also have a number of other responsibilities and duties. Many of these come into play if you decide to file a bankruptcy or consumer proposal.
If you decide to file, the trustee is responsible for ensuring that all claims are valid. This means that they will review your finances to ensure that there are no issues or irregularities, but they will also review all claims made by creditors to ensure the same. As mentioned, one of the primary roles of a bankruptcy trustee is to make sure that the entire process is legal and that the rights of all parties involved are respected.
Once your consumer proposal has been accepted or your bankruptcy paperwork has been filed, your unsecured creditors are not legally allowed to contact you. All communication between you and your creditors will be handled by the trustee.
In the case of a consumer proposal, your trustee will collect your monthly proposal payments and distribute them to your creditors. In a bankruptcy, you will need to submit monthly income and expense statements to your trustee. Your trustee will use this information to determine if you need to make surplus income payments. In addition, your trustee will make sure that you are able to keep all of the assets that are considered exempt in the case of a bankruptcy.
A bankruptcy trustee also makes sure that you receive the credit counselling that is mandatory for those who file for bankruptcy or consumer proposal.
As you can see, there are a number of responsibilities associated with being a bankruptcy trustee. When you work with a trustee, you can be assured that you are working with a person who understands debt relief situations and is trained to handle them with respect, dignity and care.