Bankruptcy is trading your non-exempt assets or ‘what you own’ in return for your debts being forgiven. It is a common financial trouble that many find themselves in and can be challenging to go through.
If loans or debts weigh you down, it can be confusing to figure out how to handle your situation in the most straightforward and responsible manner. The smartest solution for insolvency problems is to refer to a Licensed Insolvency Trustee.
A Licensed Insolvency trustee is an individual who is licensed to administer proposals and bankruptcies in Canada. Following the Bankruptcy and Insolvency Act, licenses are distributed via the Office of the Superintendent of Bankruptcy.
The majority of Canadian insolvency laws have been written in a way that allows for individuals to file for personal bankruptcy, rather than following elaborate legal procedure and Court mandates, as in other countries.
This is where a trustee comes in. Licensed Insolvency Trustees in Toronto help file any bankruptcy claims (without involving the court in most cases) and are experienced and educated in the field. Not only are trustees there for consultations, but they are also trusted professionals who will explain all manner of debt-relief options, in addition to bankruptcy.
Trustees aid you in the process from start to finish- from deciding to file and collecting the documentation to communicating with your creditors. This is helpful, as every case is different and should be tailored to individual needs.
Below are the four reasons you need to consult with a bankruptcy trustee for your financial burdens:
1. A bankruptcy trustee is there to assist you in working with your creditors.
Licensed Insolvency Trustees are parties that work on behalf of the creditors, and are licensed by the federal government to administrate a bankruptcy or proposal. They offer simple guidance and administrate the insolvency process efficiently and correctly. They must ensure that all parties comply with their duties and responsibilities and that legal procedures are followed.
In Canada, insolvency issues are met in court only if the case is contentious, if duties are not completed, or if the discharge is opposed. An Insolvency Trustee can execute the process without you having to attend court if everything goes smoothly.
2. A bankruptcy trustee is a licensed specialist
Trustees have undergone extensive training and are bankruptcy and insolvency specialists. Not only do they have the required knowledge to advise you on a range of solutions, but they are also the only ones with the license to execute these solutions.
Do not confuse a Licensed Insolvency Trustee with a ‘debt consultant,’ who advises you on dealing with debts and then refers you to a licensed professional. Most trustees help you sort out your financial problems in addition to executing the insolvency process. There is no need to pay a referral fee to see a trustee in Canada and they are required to post on their listings or ads that they are Licensed Insolvency Trustees so that they are easily identifiable.
3. A bankruptcy trustee completes the process from start to finish
Trustees are there to help you understand your options, review and advise you, as well as prepare the paperwork. First a first time bankrupt the process is usually 9 or 21 months if everything goes smoothly, but bankruptcy trustees aid you in the process from start to finish.
Here are some of the responsibilities of a trustee:
Trustees will assess your debt and advise you on all the alternatives available to you in your situation. Once you decide to go ahead with a particular course of action, trustees will begin work on getting the process started.
Compiling Documentation and Paperwork
A Trustee’s office will always be available to answer any questions you may have. After reviewing the information in great detail, the bankruptcy documents are signed. Trustees then coordinate with the Office of the Superintendent of Bankruptcy, which indicates the bankruptcy process. Bankruptcy forms are electronically filed at the Office, and you will be officially registered.
Settlement and Administration
In this stage of the process, trustees will notify your creditors that you have entered into a Bankruptcy or a Proposal along with the particulars of the situation. They will mail over any documentation. This will drastically reduce any calls from creditors demanding payment as once notified they are required to deal with your trustee.
Trustees also review all your assets. It is a common misconception that you have to give up everything you own when filing for bankruptcy. Trustees will assess your assets and decide which ones to turn over. Simple clothing, furniture and vehicles are some of the many items that are considered exempt. For non-exempt assets Trustees work to obtain a fair value for your assets and divide any money amongst your creditors.
When filing for bankruptcy, it is mandated that you must perform specific duties. That includes items such as; giving the trustee your credit cards, attending meetings if the creditors want one, and answering questions that the government may ask (although this happens rarely). Insolvency trustees will outline all these duties so you can complete them, as well as the 2 required credit counselling sessions. These sessions will help you review the causes of your bankruptcy, your budgeting goal for the future, and budgeting for a better future. They are meant to set you on a good path for when you are finished the bankruptcy process.
4. A bankruptcy trustee can offer free consultations
The sole objective of trustees is to help you deal with your debts and financial difficulties. Consultations are offered free, with no obligations. Setting up a quick consult will help you figure out the courses of action available to you without having to make a decision. All our trustees are experienced and knowledgeable and can provide specific options to fit your needs.
Those are the four reasons you need a Licensed Insolvency Trustee. We understand the stress financial burdens lead to and are here to help. Our office is dedicated to helping individuals, and our years of experience in the field make us authority figures on all matters related to insolvency.
To learn more about hiring a Licensed Insolvency Trustee to deal with your bankruptcy or proposal, call Kevin Thatcher & Associates at 1-866-702-9801 or contact us here.