Who do you turn to when you’re deeper in debt than you could ever afford to pay back? There are a lot of advertisers offering debt consolidation loans who want you to come to them first to fix your debt, but debt consolidation loans aren’t always the best way to fix your debt problems. Before you decide how to begin the debt relief process, you may want to talk to a bankruptcy trustee instead.
Bankruptcy trustees are known today as Licensed Insolvency Trustees. The change has been in place since 2015, and it was made to recognize the changing nature of the work bankruptcy trustees do. Increasingly, bankruptcy trustees are called upon to handle consumer proposals, an alternative to bankruptcy that can provide debt relief without requiring you to sell your assets.
If you’re not sure how you can repay your debt, learn what is a bankruptcy trustee and how they can help you become debt-free.
Where Do Bankruptcy Trustees Get Their License?
In Ontario, bankruptcy trustees are licensed by the Office of the Superintendent of Bankruptcy and regulated by the Bankruptcy and Insolvency Act. The act lays out the standards and guidelines by which insolvency cases are handled. Bankruptcy trustees are the only professionals who can proceed with a bankruptcy or a consumer proposal.
What Does a Bankruptcy Trustee Do?
Your relationship with a bankruptcy trustee begins with a consultation. Bankruptcy trustees such as David Sklar & Associates provide free first consultations in which they will assess your debt and your finances, as well as provide insight into how you can manage that debt. In this consultation, a bankruptcy trustee will determine whether you are insolvent. Insolvency means you have more debt than your assets or income will allow you to repay, and it makes available options for getting out of debt.
After meeting with you, a bankruptcy trustee is responsible for administering the insolvency process to discharge your debt. That means that they must verify the accuracy of your claims and your creditors’ claims and ensure that both sides honor the terms of the bankruptcy or consumer proposal. In a consumer proposal, you can benefit from debt relief and relief from legal actions and collection calls in exchange for fixed monthly payments. These payments are made to the bankruptcy trustee, who is then responsible for disbursing your payment to your creditors.
Who Does a Bankruptcy Trustee Work For?
A bankruptcy trustee must protect the rights of all parties involved. They have a legal obligation to you as well as to your creditors to find a fair solution to your debt. It’s their job to make sure the insolvency process is conducted in accordance with the law.
There are legal protections that exist to help you get out of debt. A bankruptcy trustee is there to make sure that you get debt relief and help you manage your debt.