Does My Bankruptcy/Proposal Trustee Work For Me or My Creditors?
Trustees are professionals who are licensed and governed by the federal government under the Bankruptcy and Insolvency Act (BIA). Most Trustees are also members of the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) which is a national organization. Trustees must adhere to professional ethics and codes of conduct rules and guidelines set out in the BIA and issued by CAIRP.
The Trustee’s job is to administer the BIA in relation to your bankruptcy or proposal filing. In this role, the Trustee works for the Court, the creditors and for the bankrupt or proposal debtor and the Trustee is accountable to all parties for its administration. The Trustee should administer your bankruptcy or proposal in a fair and even-handed manner so that your rights and those of the creditors are respected.
While Trustees are all governed by the BIA, not all are members of CAIRP. Like picking a lawyer or accountant, you should be comfortable with the Trustee you select and how he/she interacts with you and explains the options and the process as it affects your particular situation. If you are not comfortable, you should try another Trustee.
It’s important to understand that Trustees are the only professionals who can provide bankruptcy or consumer proposal services. There are other debt settlement services and credit counselling services that provide debt solutions but none of these are federally regulated and they do not have the BIA available to use. If you are considering using a debt settlement or credit counselling service, it would also be worthwhile to understand how bankruptcy and consumer proposals work directly from a Trustee. Most Trustees will provide you with a complimentary (no charge) consultation to review your situation and outline the options.
Resolving your financial situation is a serious matter. Ensure that you understand your options from the professionals who can properly assess your situation.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice.