A Licensed Insolvency Trustee is an individual or a corporation licensed under the Bankruptcy and Insolvency Act (BIA) by the Superintendent of Bankruptcy, Industry Canada. A Trustee administers an insolvent debtor's estate for the benefit of the creditors. To become a Trustee, one must pass an entrance examination and qualify both technically and ethically to receive a licence.
The Trustee assists the debtor in preparing a "statement of affairs" which includes a list of all assets, liabilities, income, and expenses, along with any pertinent information regarding his or her financial transactions. This information is filed with the Official Receiver at Industry Canada, who accepts the bankruptcy and issues a certificate appointing the Trustee to administer the estate.
The Trustee represents the general body of unsecured creditors in a bankruptcy estate in working toward maximum realization of assets. However, we also play the part of "referee" ensuring that all parties abide by the laws and are given the opportunity to exercise their rights. Although the creditor is our true "client", our contact with the creditors often does not extend beyond exchanging documents and letters, and it is the debtor who approaches us to discuss their financial difficulties. Many are embarrassed to find themselves in such a situation, and their self-worth has eroded because they feel they cannot provide for their families. They come to our office expecting a "lecture". What they find is understanding and guidance. We encourage them to step back and look at their situation objectively and try to make a logical decision. We make an effort to ensure that they understand the consequences of their choice and exactly how the process will unfold. Rehabilitation has a high priority and we have invested considerable time in developing our workbooks used in the financial counseling sessions. We believe it is human to make mistakes, but the true test is whether or not we learn from them.
These answers to frequently asked questions are provided as general information only. Each individual's situation is unique. Call us at 902-310-6060 for a free, no obligation, confidential consultation.
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