Getting Back to Basics: Ontario Bankruptcy Trustees and Their Role in Bankruptcy
2016 is officially in full swing, and for many of us those New Year’s resolutions are still weighing heavily on our minds. If one of your resolutions for this year is to get your finances back on track, and you’re wondering about your options, we are here to help clear things up! This week we are getting back to the basics, talking about Ontario bankruptcy trustees and their role in bankruptcy. If this is a route you are considering, read on for some important information!
When you decide to declare bankruptcy, you may be overwhelmed by the information available – a great deal of which likely leaves you with further questions. Here are some of the answers you are likely looking for.
Firstly, what is an Ontario bankruptcy trustee and what do they do? A bankruptcy trustee is an individual appointed by the Superintendent of Bankruptcy and is a court official with the role of administering bankruptcies and consumer proposals. This individual does not represent the creditor or person who owes, they simply administer the estate according to the law. Their job is to follow that law, getting a fair deal for you AND your creditors.
Reading carefully, you may have noticed that we said you AND your creditors. Their primary concern is not actually to get you the best deal, but rather to get one that benefits you and your creditors, and ultimately, serves their own interests.
This is because, in bankruptcy and consumer proposal negotiations, everything is based on income so the trustee makes things very black and white. This may involve asking you for things that are not legally relevant to learn more about you. This information may then be used to benefit your creditors, even though you were not obligated to provide it – knowing what is required and what is not can help you protect yourself.
Since a bankruptcy can’t be negotiated without an Ontario bankruptcy trustee, what options do you have? Well, you can choose to have a representative in your corner, one who knows the ins and outs of the law and how it provides you with protection. The best advice? Don’t go directly to a trustee. As mentioned, they advertise as though they are the ultimate solution for you, but their goal is not so singularly focussed.
Once you are in a bankruptcy or proposal, there is no way out until you are discharged, and so ensuring the negotiations work in your favour is crucial. A representative can help to achieve this.
Want to speak with someone before you go to a trustee, someone who can negotiate on your behalf, or just answer some of your many questions? DebtCare is here to help. Call us today at 1-888-890-0888.