What is a Bankruptcy Trustee?

In Canada, bankruptcy trustees are licensed by the Federal Government (the Superintendent of Bankruptcy) to manage bankruptcy filings as well as to submit formal consumer proposals. Think of them as specialized and highly trained CPAs, undergoing an additional three year course of study called the National Insolvency Qualification Program (NIQP.)

There are only two legally binding solutions to debt problems that will significantly reduce or in some cases completely eliminate consumer debt: consumer proposals and personal bankruptcy. The government entrusts the management of both only to bankruptcy trustees.

Regardless of whether you file a consumer proposal – which allows you to pay back only a portion of your debt and restore your credit rating more quickly – or declare personal bankruptcy, you will be required to attend credit counseling sessions. Since this is part of their responsibilities, bankruptcy trustees are fully knowledgeable regarding the credit counseling process. The fact is, of all the debt solution professional providers available for consumers to go to for advice and guidance, bankruptcy trustees are by far the most knowledgeable.

So why don’t most consumers in financial trouble start the process of seeking solutions by consulting a bankruptcy trustee? Bankruptcy is a terrifying outcome for many of us, and the unfortunate fact that the “B” word is in the title of these highly qualified debt management professionals makes it appear they are experts in bankruptcy only.

Nothing could be further from the truth. The first step in getting out of debt is to determine both how deep the hole you find yourself in actually is, and then assessing your capability to climb out of it. If your income and assets are such that it is not likely you can crawl out on your own, you’ll have to seek relief from your creditors. There are a variety of ways to do this, all of which depend on how much you owe, how much you own, and how much you earn.

Bankruptcy trustees will help you assess your current financial situation and explain all available options to you. Talking to a trustee does not mean you will definitely end up in bankruptcy. Initial consultations with a trustee are free, and in some cases a simple phone call is all it takes to find a solution that works for you. If you’d like learn more about bankruptcy trustees and how to find one, the Internet has many web sites that will get you off in the right direction. Take the time and look into bankruptcy trustees. You’ll be glad you did.