What is a Bankruptcy Trustee?

October 12, 2012 9:51 pm Published by

A Bankruptcy Trustee is the only individual in Canada allowed to administer the personal bankruptcy process or act as an administrator under a Consumer Proposal. A bankruptcy trustee gets their authority from the Bankruptcy and Insolvency Act and is considered an Officer of the Court and is licensed by the Office of the Superintendent of Bankruptcy to oversee the process and provide information to debtors and creditors as the navigate the bankruptcy process.

A Bankruptcy Trustee is not acting as your personal representative, or advocate through the process, but is overseeing the process both for you and your creditors. A Trustee’s job is to administer the Bankruptcy and Insolvency Act and treat debtors and creditors fairly as outlined under the Act. A Trustee will collect your assets above what is considered Exempt, monitor your Monthly Income, provide Debt Counselling, assist your creditors in understanding their rights, Apply for your Discharge from Bankruptcy, or Notify your Creditors that your Proposal has been completed, and then distribute any Dividends to your Creditors, while all the while advising and updating the Office of the Superintendent of Bankruptcy and the Court (if applicable) of the entire process.

A Trustee sort of acts like a police office directing traffic as debtors and creditors navigate their way through the insolvency legislation.

Bankruptcy Trustees are considered Officers of the Court and their job is to administer the requirements of the Bankruptcy and Insolvency Act that outline the rights, duties, and obligations of debtors, creditors and the Trustee. Bankruptcy Trustees’, however, can do more than deal with bankruptcies and Proposals; they can advise you in all aspects of your financial dealings, including helping you prepare a budget, the proper use of credit products and facilities, and how to rebuild your credit rating.