What is a Trustee in Bankruptcy?

What is a Trustee in Bankruptcy?

From time to time, and for a variety of reasons, people often become unable to pay their debts.  This has been a long standing issue that the Canadian Government addressed by passing certain laws.

Since the laws are complicated, the Government began to train and license specialists in debt management; they call these specialists Trustees in Bankruptcy.  (Not Trustees of Bankruptcy or Trustees and Bankruptcy).  Later, these professionals were renamed Licensed Insolvency Trustees.

A Licensed Insolvency Trustee is an officer of the court licensed by the Superintendent of Bankruptcy.  The Superintendent works for Industry Canada which is a department of the Federal Government.

The Federal Government created the Bankruptcy and Insolvency Act to resolve situations where an individual or company is unable to pay its creditors and this is the main law practised by Licensed Insolvency Trustees.  As an officer of the court it is a Trustee’s job to make the insolvency system work.  While we wish that it never happened, unforeseen circumstances regularly make it impossible for people or companies to pay their debts.  It`s the Trustee`s job to act as an intermediary between the debtor and the people they owe, and to follow the law.

Only a Licensed Insolvency Trustee can file assignments in bankruptcy or consumer proposals in Canada.

Licensed Insolvency Trustees have a duty to explore all of your options during each initial assessment.  Our fees are regulated by Federal Law as well as the Courts, and we are bound by a strict code of ethics.  In addition, the Licensed Insolvency Trustees at Steve Welker and Company are also members of the Institute of Chartered Accountants of Ontario as well as the Canadian Association of Insolvency and Restructuring Professionals which also have strict codes of ethics which must be adhered to.

While anyone can promise to erase your debt, not everyone is licensed and regulated by the federal government, or bound by the codes of ethics that Licensed Insolvency Trustees are.  Licensed Insolvency Trustees truly are trustworthy professionals.

When dealing with too much debt it`s important to get the facts and explore all of your options.  The Licensed Insolvency Trustees at Steve Welker and Company never charge up-front fees and offer free no-obligation consultations where they will review your personal situation and explain your options.  They never pressure clients, so you`ll have time to review the facts before making an informed decision of how to deal with your debt.  Your journey to becoming debt free begins with a single phone call.