A bankruptcy trustee is an individual or corporation who is officially given the power to distribute a bankruptee’s property among creditors, in line with the rules laid out under the Bankruptcy and Insolvency Act.
In other words, the trustee controls all aspects of your bankruptcy. They can also receive all your credit cards, and other assets such as furniture or your vehicle. The trustee will obtain fair value for your assets and divvy this money up among your creditors.
So it shouldn’t be a surprise that many people, when meeting with their trustee, have many questions about how the process will go down.
Before first meeting with your bankruptcy trustee, it’s a good idea to write down your thoughts and any questions you may have.
Not sure where to start? Try these tips, starting with the most important question you should ask.
Ask what the rules of the bankruptcy proceeding are, and how they will affect your bankruptcy.
You may do a fair bit of research yourself on the rules, spending a lot of time hunched over the computer as you read various websites. And this information can be very useful in shaping your understanding of the process (or introducing you to it in the first place), however asking a professional is the easiest option.
One key aspect of the rules, of course, is what they mean for you. Your trustee will be knowledgeable on the rules and how they will affect your particular situation. So make sure they go through all the aspects of what your case means under the Bankruptcy and Insolvency Act.
Here are some specific questions you should inquire about during your meeting:
- How much will the bankruptcy proceeding cost me, in terms of both payments you may make and the price of having your assets sold away?
- Will my student loans be wiped away by the bankruptcy filing?
- What is on the line for my bankruptcy?
- What does the bankruptcy mean for my spouse?
- What do I get to keep after the bankruptcy?
A good trustee will ensure that you have all of your questions are answered, regardless of how insignificant they may be.
If you have questions about the process, that’s something we can help you with in one of our debt consolidation services. If you’re curious about how you will fare during a debt-consolidation situation, contact us today to book a consultation.
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