Licensed Insolvency Trustee
(Formerly called Bankruptcy Trustees, prior to April 2016)
What is a Licensed Insolvency Trustee & How Can they Help?
If you’re thinking about filing for bankruptcy in Ontario, you’ll have to seek the service of a licensed insolvency trustee.
The trustee plays a very significant role in the bankruptcy procedure.
Trustees are highly educated individuals specialized as debt consultants.
The Bankruptcy and Insolvency Act requires that you find a licensed trustee who will manage your bankruptcy claim.
The trustee must be federally regulated as a Licensed Insolvency Trustee (LIT).
It is your choice to find the trustee you desire to work with.
There are many LITs in Ontario.
When you find a trustee for the initial consultation, it is not an obligation to work with the same trustee.
The initial consultation is free of charge.
You can afterwards decide whether you want to file your bankruptcy with the respective trustee or seek another one.
Common sense indicates that it is best to attend an initial consultation with at least one or two trustees before deciding with whom you desire to work with.
What does a Licensed Insolvency Trustee do for me?
Trustees are the only professionals licensed in Ontario to administer proposals and bankruptcies in Ontario.
The role they play is very important. They act as referees for the debtor and the creditor ensuring that each party respect their obligations.
On the part of the creditor, the trustee will forward to them all documentation filed for bankruptcy.
The trustee will also ensure that the debtor complete their responsibilities.
When you file for bankruptcy, the trustee will:
- Provide you with the initial consultation and inform you about the bankruptcy procedure.
He/she will inform you if you have alternative options;
- The trustee will help you complete all the forms and will forward them to the relevant authorities as well as to your creditors;
- It is also the responsibility of the trustee to file your income tax return.
He/she will calculate your surplus income if any, and provide access to mediation services if for some reason there is a dispute between you and your creditors;
- The trustee will ensure that you follow proper insolvency counselling and that you are completing your responsibilities.
He/she will also follow-up on asset sales for compensation to your creditors;
- It is also the responsibility of the trustee to make a request for your Certificate of Discharge.
The role of the trustee goes far beyond what has been mentioned here.
They act as referees.
A misconception is that trustees act on behalf of the creditors.
That is far from the truth.
Their task is to ensure that you have all the information necessary and know what to expect when filing for bankruptcy.
Just the same they make sure that the creditors claims are valid and enforceable taking into consideration your financial situation.
What should I do now?
What you need to know about hiring a trustee
It’s important to know that trustees are offering a service.
Therefore, their services does not come without a cost.
When you find a trustee you will have to pay administration fees and bankruptcy procedure fees.
Ready to Get Out of Debt?
Talk to a Government Licensed Bankruptcy Professional For a Free Debt Relief Consultation Today.
Call 888 555-3022
Where to find a trustee
The internet is a great source of information.
When you search the web, you can find licensed Insolvency Trustees living close to your neighbourhood.
You might also want to visit the official site of the government of Ontario concerning consumer loans and bankruptcy.
The site is also a great place to obtain more information about bankruptcies prior to your initial consultation with a trustee.
Obviously, you may have other sources such as friends or family members who know a particular trustee and may recommend them to you.
The main thing to remember is that it is a requirement to find a trustee if you’re going to file for bankruptcy in Ontario.
They are the only professionals with the legal mandate to act on your behalf when filing for bankruptcy.