Does My Trustee Work For Me or My Creditors?

Updated:  March 2, 2022

Trustees are professionals who are licensed and regulated by the federal government under the Bankruptcy and Insolvency Act (“BIA“). Learn what is a Licensed Insolvency Trustee here. Most Trustees are also members of the Canadian Association of Insolvency and Restructuring Professionals (“CAIRP“), a national organization. Trustees must follow professional ethics and code of conduct rules and guidelines set out in the BIA and issued by CAIRP.

• Your Trustee’s job is to administer your bankruptcy or consumer proposal following the Bankruptcy and Insolvency Act.

• The Trustee is accountable to all parties involved in your bankruptcy or consumer proposal; you, your creditors and the Court.

• The Trustee is required to administer your bankruptcy or consumer proposal in a fair and unbiased manner and to respect you and your creditors’ rights.

While Trustees are all governed by the Bankruptcy and Insolvency Act, not all are members of CAIRP. Like choosing a lawyer or accountant, you should be comfortable with your Trustee and how he/she interacts with you, explains your options and the process as it affects you. If you are not comfortable, you should contact another Trustee.

It’s important to understand that Trustees are the only professionals who can provide personal bankruptcy or consumer proposal services in Canada. So if you are wondering who to talk to about a consumer proposal or bankruptcy, a Trustee is your answer.

There are debt settlement companies and credit counselling companies that offer other debt solutions. None of these companies are regulated, and they do not have the power or authority of the Bankruptcy and Insolvency Act.

If you are considering using a debt settlement or credit counselling company, you should also contact a Trustee to understand how personal bankruptcy and consumer proposal would work for you.

Most Trustees will provide you with a FREE 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. We are experienced, hands-on insolvency practitioners who understand the personal impacts of major financial stress;

• You won’t be stuck in an assembly line process.

• You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.

• We will review your debt solution options, including filing a consumer proposal or personal bankruptcy.

• We help Canadians with overwhelming debt get fresh financial starts.

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free, no-obligation consultation.

We offer free consultations to review your financial situation and practical debt resolution options.  Contact us to discuss your situation over the phone, a video chat, or in-person in Saint John, Moncton, Fredericton, Charlottetown, Dartmouth, or Miramichi.