WHAT IS A TRUSTEE IN BANKRUPTCY?
In Pembroke, Ontario, a Trustee in Bankruptcy (also known as a Bankruptcy Trustee) is a person licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer bankruptcy proceedings. A Trustee in Bankruptcy can also provide debt counselling, negotiate settlement agreements on your behalf, and help you make a proposal to your creditors to consolidate debt and avoid bankruptcy.
Trustee fees are regulated by the federal government and, therefore, often cost less than other debt management consultants or debt solution providers. As an officer of the court, the Trustee has an obligation to look after the rights of the creditors and to investigate your situation, as required. The Trustee also ensures that your rights are not abused.
A Trustee in Bankruptcy in Ontario is responsible for:
- Reviewing your situation and counselling you on available alternatives
- Preparing official documentation that is filed with the OSB and used to notify creditors that you have filed for bankruptcy
- Ensuring that the creditors’ claims about what you owe are valid
- Ensuring that you receive mandatory credit counselling and access to mediation services to help with negotiations if there is a dispute regarding any surplus income you are required to contribute as part of your bankruptcy
- Selling your assets (except those exempt from seizure by Ontario and federal laws) and distributing the proceeds from the sale to your creditors
- Administering your bankruptcy estate file, which includes all of your legal and equitable interests from beginning to end; assets held in a bankruptcy estate are usually sold by the Trustee to help contribute to your outstanding debt
- Evaluating your conduct both before and during a bankruptcy, as well as the causes of your financial problems
- Making the application for your discharge from bankruptcy, which will release you of your debts and give you a fresh start
Personal bankruptcy and other bankruptcies are governed by Canada’s Bankruptcy and Insolvency Act. You must use the services of a Trustee to file for bankruptcy in Pembroke, Ontario.
How to become a Trustee in Bankruptcy
Helping fellow residents of Pembroke relieve their financial stress and get on the road to financial stability is incredibly rewarding. Bankruptcy Trustees are the most educated and highly trained of all professional credit and debt counsellors. To be eligible to become a licensed Trustee, you must:
- Have either a Canadian university degree or its equivalent, or a minimum of five years of relevant work experience (you are also eligible if you hold a relevant professional designation recognized in Canada)
- Successfully complete the Chartered Insolvency and Restructuring Professionals (CIRP) Qualification Program (CQP), a three-year program administered by the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) that culminates in a written exam, known as the National Insolvency Examination, which you must pass to take the oral examination
- Successfully complete the BIA Insolvency Counsellor’s Qualification Course, a CAIRP program that is essential training for all future Trustees
- Pass an Oral Board of Examination before the Office of the Superintendent of Bankruptcy (OSB)