A Licensed Insolvency Trustee is regulated by the Canadian government to process personal and corporate bankruptcies as well as administer proposals to creditors. A Licensed Insolvency Trustee is an officer of the court whose primary role is to ensure that your rights and your creditors’ rights are maintained throughout the process.
There are many companies who offer credit consulting or debt consolidation services. However, only a Licensed Insolvency Trustee can provide all these services as well as administer a consumer proposal or bankruptcy. In Canada, Trustees are licensed and regulated by the federal government and will work with you to help determine what is the best option for you. Only Trustees abide by a strict code of conduct to explain all of your debt relief options while other debt consultants do not.
What is a Debt Consultant?
You may have heard of debt consultants who offer debt relief advice for a fee. While a good debt consultant may offer some good advice, they are not allowed to file a consumer proposal or bankruptcy – only a Licensed Insolvency Trustee can file and administer a bankruptcy or proposal. So a debt consultant must refer you to a Licensed Insolvency Trustee to do the work. Most, if not all, Trustees in Canada offer a free consultation to help with your debt problems, so you should never pay a fee see a Trustee.
Qualifications of a Licensed Insolvency Trustee
To become a Licensed Insolvency Trustee, there is a strict education program through the federal government which takes approximately 3 years. This stringent process is to everyone’s advantage, as filing a consumer proposal or bankruptcy is a complicated legal process, which needs a highly trained debt expert to guide you through the process. You can be assured that a Licensed Insolvency Trustee is the most qualified person you can talk to about your financial situation.
Why use a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee has many responsibilities in addition to being able to file your bankruptcy or consumer proposal. Basically, a trustee will:
- Provide a free consultation to assess your financial situation and advise you of your options.
- Prepare and file the paperwork that is necessary to file a proposal or a bankruptcy.
- Notify your creditors, which stop them from contacting you, stop legal actions, and stop garnishment of your wages.
- Administer the proposal or bankruptcy, including negotiating a settlement with your creditors.
- Provide the required credit counseling sessions and ensure that you are aware of the duties you need to perform to complete your proposal or get discharged from bankruptcy.
Who does a Licensed Insolvency Trustee work for?
A Licensed Insolvency Trustee is an officer of the court who reports to the Office of the Superintendent of Bankruptcy. Trustees will ensure that your rights and your creditor’s rights are explained and maintained throughout the process.
For more information on this topic and to view a comparison chart, please see this page.
At Boale, Wood and Company Ltd. our Licensed Insolvency Trustees have helped thousands of people across BC get out of debt.
With a free, no obligation consultation to discuss your debt relief options, what do you have to lose by asking us a few questions to make an informed decision. Call us, it’s not too late. (604) 605-3335.