Bankruptcy trustees in Canada generally refer to corporations or individuals who are legally authorized to distribute a bankrupt person’s existing property among all of their creditors or hold this property in trust. The distribution of assets among creditors is carried out by the trustee in accordance with the laws and regulations established by the BIA or the distribution scheme of the Bankruptcy and Insolvency Law. The official superintendent has a duty to license the bankruptcy trustee and to grant permission for this distribution of assets.
Roles and Responsibilities of a Bankruptcy Trustee
Once the bankruptcy trustees are given the legal right to access the property and assets of the bankrupt person, the insolvent person and all others who have an interest in the property and assets of the person in bankruptcy must transfer assets and property to the bankruptcy trustee.
It is also the trustee’s responsibility to assist the bankrupt in filing and preparing a consumer proposal for creditors. The bankruptcy trustee is expected to provide credit or debt counseling to the person in bankruptcy.
Bankruptcy trustees cannot violate the rules of the Bankruptcy and Insolvency Act and are required by law to follow the procedures of the BIA. The trustee is also charged with the responsibilities of calling meetings of creditors and sending notices and procedural documents to interested parties.
The trustee has full right to oppose the liquidation of the bankrupt person and is also obliged to prepare the pre-liquidation report of the bankrupt person.
Common Duties of Bankruptcy Trustees
They are responsible for distributing funds to creditors, selling non-exempt property, presiding over creditors’ meetings, reviewing files for fraudulent preferences, reviewing transactions, and objecting to the discharge of the bankrupt.
A bankruptcy trustee is also entrusted with the duty of calling the first meeting of creditors for a number of reasons. These purposes include the appointment of inspectors, the confirmation of the appointment of the trustee or some type of substitute in that place, the consideration of the affairs of the individual in bankruptcy, and the provision of instructions and orders to the bankruptcy trustee for the proper administration of the bankruptcy. inheritance.
Other responsibilities
The bankruptcy trustee acts as the representative of the court in any bankruptcy case. His responsibility involves the examination of all the documents that the debtor has presented, the follow-up of the creditors’ credits, the verification of the validity of those credits and the verification of whether the bankrupt person can really qualify under the requested category.
It is the trustee’s job to protect the integrity of the bankruptcy system. The trustee also decides which assets of the debtor must be sold to pay the debts, administers this sale process, and takes possession of the debtor’s non-exempt assets.
A word of caution
If a person in bankruptcy intentionally provides false information or withholds valuable information from the trustees, they could face criminal charges and their case could be dismissed.
The bankrupt may also have to prepare for a government-initiated investigation into charges of suspected bankruptcy fraud. Bankruptcy trustees, even individual ones, on the other hand, may be subject to audit for criminal/ethical violations or breaches of fiduciary duties.
last word
Don’t do it if you can help it. Having said that, I know that the relief felt by families buried in debt can be very healing. My best wishes.