Earthblog

The trustee in bankruptcy is appointed by the Court to administer your bankruptcy and is licensed to practise in Canada by the federal government. Before you decide to go bankrupt you must meet with a licensed trustee to review your options so that you can make a more informed decision about filing. Understand that the trustee MUST follow the rules set out by the Bankruptcy & Insolvency Act.

Although you get to pick the trustee they do not necessarily work for you. The job of the trustee is to make sure that both you and your creditors follow all the rules pertaining to filing for bankruptcy. A trustee is a referee of sorts who assures that both you and your creditors understand the rules. It is the responsibility of the trustee to explain, at the start of the filing, the duties and requirements of filing for bankruptcy. Like a referee, if you do not follow the rules, you well be assessed a penalty by the trustee.

With all this in mind the trustee does understand that you are going through a very difficult and stressful time in your life and will deal with your situation with empathy and understanding.

When you file for bankruptcy you must assign all your assets over to the trustee in exchange for the elimination of your unsecured debts. There are some exemptions, such as some motor vehicles or tools for your trade or furniture which will be explained by the trustee.

The trustee is usually the administrator of your consumer proposal.