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Tag: bankruptcy trustee

  • Who Does a Bankruptcy Trustee Represent?

    While bankruptcies and consumer proposals are two common practices for Canadians looking to deal with problematic debts, they can also be somewhat confusing or misunderstood. One of the most common misconceptions comes with regard to who a bankruptcy trustee represents. This blog aims to clear the confusion.

    In the simplest terms, a personal bankruptcy in Canada is a legal process whereby a bankruptcy trustee is appointed to administer your estate and distribute any assets to your creditors. With a consumer proposal, a financial calculation is done based on your income and assets and a proposal is put forth to your creditors based on a sum that you would pay back. In this case, a trustee administers the proposal with your creditors.

    While it may sound, in both circumstances, as though they represent you, the reality is more complex.

    A trustee is a legally appointed official, regulated by the government. They are required to represent all parties involved, namely the debtor and the various creditors. This means that, while the trustee does represent you, they are also required, by law, to represent your creditors as well. Their job is to administer your estate to ensure all parties are satisfied.

    Another issue arises with regard to payment, specifically in the case of a consumer proposal. With a consumer proposal, since a bankruptcy trustee is paid based on the size of the proposal (the total sum to be repaid), there is some motivation to obtain a higher payout from you.

    Since a bankruptcy trustee is the only person who can legally administer a bankruptcy or consumer proposal in Ontario, you can’t remove them from the equation. However, you can obtain your own representation to help you work through the process, a person who will help protect you and your assets. A financial consultant can examine your current financial circumstances, determine, in consultation with you, your financial abilities as far as repayment, and help structure the negotiation with the trustee to ensure the best possible deal. Furthermore, working with a financial consultant will give you access to the trustees they’ve worked with in the past, ones they know to be trustworthy.

    Our aim here is not to disparage bankruptcy trustees. There are many reputable, trustworthy trustees out there willing to do their best to achieve a satisfactory solution for all involved. However, it is always smart to have your own representation. Just as you would never head to trial without a lawyer, the same should be said for this financial situation.

    If you’re considering bankruptcy as a debt solution, DebtCare is the best place to start.

    Call us today for a free consultation to discuss your options: 1 (888) 890-0888.

     

     

  • Who Represents You in a Consumer Proposal?

    For many Canadians drowning in debt, a consumer proposal is a very valuable resource. The ability to reduce the amount of debt you owe, reduce interest and combine all payments into a single monthly payment you can afford, are all really significant benefits. That being said, a consumer proposal is a complex legal process, one that must be administered by a trustee in bankruptcy, so the question remains, who represents you in a consumer proposal?

    Often people are confused when it comes to this question. After all, trustees often market their services as a solution to your debt problems, and since you’ve enlisted their services, it would seem a safe assumption that they represent you. And that isn’t necessarily an incorrect assumption. A trustee does in fact represent you in a consumer proposal. The problem is, they also represent your creditors.

    When administering a consumer proposal, a trustee is required to be an impartial party, presenting the best solution for you and a fair option for your creditors. The issue with this is that trustees are paid based on a percentage of your proposal, so the bigger the proposal, the more they earn. This creates a major conflict of interest when it comes to protecting you!

    When you first meet with a trustee, they will ask you to provide information about yourself and your finances. Entering this meeting assuming the trustee is representing you and you alone can result in you providing information not necessary for the administration of the consumer proposal. This information may then be used to obtain a larger amount for your creditors, and thus a larger paycheque for your trustee.

    Going to a trustee without representation is like going to court without a lawyer. Most, we would argue, would see this as a rather dangerous idea, and thus is one we would advise against. It is the same with a consumer proposal. You want your own representation when considering a consumer proposal – representation to provide protection for you and your financial assets without having to also worry about your creditors.

    The point of this blog is not to argue that trustees cannot be trusted. Most can, but government regulation requires them to be fair to all parties, which naturally results in issues. The point is to inform you of the dangers of calling a trustee before securing your own representation.

    Our advice is to speak with a financial consultant who can protect you, one hired by you to represent you so there are no repercussions in telling them everything. They can negotiate your consumer proposal with a trustee so that the deal proposed is likely to be successful.

    At DebtCare, we have longstanding relationships with several trustees and can protect you throughout the process.

    Contact us today before contacting a trustee directly. 1-888-890-0888.

     

  • Why You should Never Go to a Bankruptcy Trustee in Ontario Without Representation

    Bankruptcy TrusteeA bankruptcy trustee is a court appointed officer. Their job is to administer bankruptcies and consumer proposals in Canada – and they do this by representing both you and your creditors. This means that they are expected to get as much as possible from you for your creditors.

    Take a look at the typical process and you will see how people get themselves in trouble:

    A trustee advertises a financial solution, and you contact them for help (thinking that because you have contacted them that they represent you). However, even though you are the one looking for assistance, they in fact represent both you and your creditors.

    Next, the trustee will pitch you on the financial solutions they can provide, which are usually bankruptcy or a consumer proposal. Since a trustee doesn’t make any money if you don’t sign up, things are often very pleasant at the beginning.

    At no point during this meeting will they tell you how they get paid, but it is important information. A trustee gets paid based on a tariff (a fee set by the government in the case of bankruptcy, a percentage in the case of a consumer proposal, a percentage of surplus income in the case of a bankruptcy) – this comes out of your monthly payment.

    How much you have to pay and the amount of your monthly payments in a proposal and bankruptcy depend on your income and assets – the more income and assets you have, the more you end up paying. In the case of a consumer proposal the amount of proposal you negotiate will be locked in once the proposal is accepted.

    In the case of bankruptcy you have to report your income to the trustee each month and they do a calculation called surplus income. If you have income above a certain threshold you will have to pay your trustee 50% of the amount that has exceeded the threshold. In bankruptcy, when there is surplus income (income over the amount defined by the Bankruptcy and Insolvency Act) your bankruptcy will go from being 9 months to 20 months which can make a huge difference.

    So, why is being represented when going to a trustee a much smarter idea? Because it gives you the chance to, firstly, openly discuss your information without reprisal or pressure to sign. This representation can mean negotiating a much lower proposal, or a much stronger financial picture with contingencies in place to help you bounce back quickly. Finally, when you have your own representation, you won’t have to deal directly with the bankruptcy trustee – that individual will handle most negotiations and correspondence for you!

    Before you call a bankruptcy trustee directly, call DebtCare Canada – we can help keep you protected. Contact us today by calling 1-888-890-0888.

  • 파산 관재인(Bankruptcy Trustee, 破産管財人) 에 대하여

    파산 관재인(Bankruptcy Trustee, 破産管財人) 에 대하여

    온타리오주에서 채무 조정을 할 때에 파산 관재인은 중요한 역할을 합니다. 파산 관재인(트러스티)은 파산 및 개인회생(consumer proposal)를 감독하는 파산 감독관(Superintendent of Bankruptcy)에 의해 임명됩니다.

    파산 관재인을 직접 방문하기 전에 온타리오주의 파산 관재인이란 무엇이며 채무 조정에 있어 어떤 역할을 하는지 이해하는 것이 중요합니다. 여러분이 알고 있어야 하는 가장 중요한 사실은 파산 관리자가 법정 대리인으로 채무자의 재산을 관리 하지만, 파산 또는 개인회생을 신청할 시 그들의 재정적인 혜택은 채권자에 대한 수익을 극대화 하는 방향인 것입니다.

    이것은 여러분에게 무엇을 의미할까요? 여러분이 파산 관재인을 만나러 간다는 것은 여러분의 재정 전체를 공개 한다는 것이며, 그것은 여러분의 재정을 공개를 하기 위해 채권자를 찾아가는 것과 다르지 않습니다. 명심하세요. 파산 관재인의 역할은 여러분의 모든 채권자의 이익을 위하여 여러분에게 가능한 최대한의 금액을 획득하는 것입니다 .

    파산 및 개인 회생은 어느 정도 온타리오주 자체의 산업이 되었습니다. 파산 관재인은 법원이 임명한 사람이며 파산 또는 개인 회생 신청에 중립적인 역할을 담당하도록 되어있습니다. 하지만 그들은 빈번히 부채로 어려움을 겪고 있는 여러분이 도움을 받기에 안전한 곳이라며 주요 미디어에 광고를 합니다. 그것은 올바른 사실이 아닙니다.

    올바른 사실은, 파산 관재인을 방문하는 것은 회계사나 세금 변호사의 대변없이 세금 문제에 대해 직접 CRA에 말하는 것과 다르지 않다는 것입니다.

    이 외에도 덧붙이지면, 개인 회생의 경우에는 여러분의 회생 신청 금액의 비율에 따라 파산 관리인에게 보수가 지급될 우려가 있습니다. 이것은 수익적인 측면에서 개인 회생이 파산보다 그에게 더 매력적이 될 수 있다는 것입니다. 우리는 다수의 개인 또는 비지니스 소유자가 파산 관재인의 권유에 인하여 개인 회생 신청을 한 많은 사례를 보아왔습니다. 그러한 분들은 결국 처음에 지불 하기로한 금액을 감당 할 수 없게 되어 어느 시점이 되어 파산을 신청하게 됩니다.

    여러분이 파산 관재인을 찾아가게 되면 그들은 여러분의 소득, 자산과 부채에 관한 완전한 재정 공개를 요청합니다. 그들은 파산이나 개인 회생 금액을 높이기 위하여 가능한 많은 소득과 유동 자산을 찾기 위해 노력할 것이며 이것은 모두 여러분의 채권자의 이익을 위한 일입니다. 또한 경우에 따라서는 자신의 수수료 이익을 위해 그러한 방법을 선택한다는 것을 추측해 볼 수 있습니다.

    또 다른 문제는 파산 신청을 할 시, 많은 경우 고객이 자기도 모르게 정보를 누락하는 경우입니다. 파산 관재인은 여러분의 말에 따라 여러분이 제공하는 정보가 무엇이든지 다 받아들일 것입니다. 일단 파산 또는 개인 회생을 신청하게 되면, 트러스티는 엄격하고 정해진 절차에 따라 여러분의 공개 정보 확인에 관여하게 됩니다. 만약 트러스티가 추가 소득이나 자산을 발견하게 되면 그들은 여러분이 지불해야 할 금액을 조정할 것입니다. 파산의 경우, 미리 정해진 기간으로 상환한다는 것이 계속해서 조정되는 금액으로 인해 끝이 없는 상환으로 급증할 수도 있습니다. 여러분이 가지고 있다고 트러스티가 믿고 있는 모든 돈을 트러스티에게 지불할 때까지 면책을 받을 수 없습니다.

    사람들에게 세금 문제가 있을 때 그들을 대변하여 일을 하는 회계사와 세금 변호사가 있듯이 여러분에게 채무 문제가 있는 경우 여러분을 대변 할 수 있는 재정 컨설턴트가 있습니다. 그들은 여러분을 위한 정보를 준비하고 여러분의 선택에 대해 조언하며 서류 작업을 하고 파산이나 개인 회생 신청 처리에 있어 여러분을 대변하여 도와드릴 수 있습니다. 또한 여러분을 보호할 수 있는 공정한 거래를 하게 되실 것을 보장합니다.

    온타리오주의 트러스티나 채무 조정에 있어 그들의 역할 또는 파산 및 개인회생에 대한 더 많은 정보를 원하시면 DebtCare Canada Inc (주)캐나다개인회생/채무조정센터에서 재무조정스페셜리스트로 일하고 있는 나오미 조에게 지금 바로 연락주세요.

    무료 상담전화는 1-866-413-3716 그리고 빠른 이메일 상담은 ncho@debtcare.ca입니다.

    더 자세한 정보를 원하시면 www.debtcare.ca/korean 또는 www.debtcare.ca 를 방문해 주세요.

    가족처럼 함께 고민하며 깨끗히 해결해드리겠습니다!!

    • 친절한 무료 상담전화 및 이메일 상담
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    • 채무청산과 부채탈출로 새로운 삶 새로운 출발

     희망은 항상 출발이자 영원한 시작입니다!!

  • Ontario Bankruptcy Trustees – What is Their Role in a Consumer Proposal?

    Ontario Bankruptcy TrusteeWhen you feel as though you are drowning in debt, with few options available for relief, you may be considering a consumer proposal as a way to get those collection agencies off your back and to obtain some semblance of financial stability. Knowing this, perhaps you are thinking about seeking the advice or assistance of an Ontario bankruptcy trustee.

    Wait – before you enlist the services of a bankruptcy trustee, you should first know what role they play in a consumer proposal and how this can impact you.

    A bankruptcy trustee in Ontario is an individual licensed by the Superintendent of Bankruptcy. Their job is to administer consumer proposals and bankruptcies and to manage assets held in trust. They will negotiate the settlement between you and your creditors. In a proposal, that trustee will assist you in developing a proposal to present to your creditors (usually a percentage of what you owe them), and once accepted, monthly payments are made through the trustee, and the trustee transfers that money to your creditors.

    Sure, this all sounds well and good – after all, you can’t make a consumer proposal without a trustee – it is a legal agreement under the Bankruptcy and Insolvency Act and must be administered following a formal and regulated process. That being said, there are a few important things to keep in mind before you make the call to a trustee.

    Firstly, a bankruptcy trustee does not simply act on your behalf. Even though you are the one to call, this individual represents both parties (you and your creditors), not just you. This means that they are obligated to seek the most money possible for your creditors to ensure that they get as much of what they are owed as possible, while still being fair to you. What this means is that you may not necessarily be getting the best deal.

    Secondly, most bankruptcy trustees never outline how they are paid – but this is important. Although their fees are regulated, they are paid according to how much you pay to your creditors, and thus it is in their best interest to get as much money for your creditors as possible.

    So, what then are your options? Accept this and go forward? Skip the proposal all together to avoid it? No, there are ways to protect yourself and secure a consumer proposal that meets your needs. The best way to do this is to work with a financial organization experienced with debt relief solutions, one that can offer you representation and protect you throughout the entire proposal process. These professionals can walk you through the process, ensuring that you are aware of and understand your choices, as well as administer your paperwork.

    Know before you go: before you call that trustee, think about getting personal representation – someone who will look out for your best interests rather than their own or that of your creditors. DebtCare Canada can help – call us today at 1-888-890-0888.

  • Bankruptcy Trustee – Recognizing their Role

    Bankruptcy TrusteeIf you are drowning in debt and having trouble making even the minimum payment on any of your cards – or worse, not making them – it might be time to admit that you have a debt problem. Ignoring this problem will only end up making things worse, and so avoidance should never be an option. For many in this position the best solution is bankruptcy – but how does one know who to turn to when this is the case – who can you trust? It is very important when making this type of financial decision to understand the role of a bankruptcy trustee and the part they play in your financial future.

    What is a bankruptcy trustee? Bankruptcy is a legal process and must be handled by a licensed professional, a bankruptcy trustee. This is the individual who will administer your bankruptcy or consumer proposal and manage your assets held in trust. This individual can also provide advice and assistance to make sure both your rights and your creditor’s rights are protected. They are an objective party – their role is to remain impartial throughout the process, acting in both parties’ best interests.

    A bankruptcy trustee has several jobs. The first main job is to repay your creditors – this is done by selling your assets. This includes negotiations with your creditors as far as settlements. A bankruptcy trustee may also provide debt counselling or put you in contact with an insolvency lawyer if deemed necessary.  During your bankruptcy, a bankruptcy trustee is the person who monitors your activities and ultimately decides when you can be discharged. For example, if your financial situation changes and your income now leaves room for surplus income, a bankruptcy trustee may determine that a longer term may be necessary before discharge.

    Can you trust a bankruptcy trustee? The short answer is yes – they are licensed and regulated by the Superintendent of Bankruptcy, their actions monitored and any questionable behaviour is addressed. Their goal should ultimately be to help get you out of the financial pickle you are in – and most adhere to this. All of this being said, it is sometimes best to visit a professional debt solutions company first – that way you can be sure that all avenues have been examined before entering into bankruptcy, and if the end conclusion is to file, they can put you in touch with one that is trusted and respected.

    For more information about bankruptcy and the role of a bankruptcy trustee, please contact DebtCare Canada today at 1-888-890-0888 or visit www.debtcare.ca.

  • Debt Management – You Don’t Have to Do it Alone

    Debt ManagementWhen you are in debt, the personal issues that all too often accompany it can be overwhelming, and sometimes the task of ridding yourself of this financial burden can feel insurmountable. Knowing where to turn for advice or assistance can be tough, and so many people instead try to do it on their own. Debt can be crippling, but getting out of debt doesn’t have to be hard when you have the right people behind you, those that can offer debt management plans that can relieve your financial stress.

    There are several different types of debt management solutions available, and choosing the one that best suits your financial situation takes knowledge and a careful consideration of the options which exist. The most effective way to set in motion the best debt management program is to speak with a professional debt consultant.

    What types of debt management programs can a professional organization offer?

    Debt consolidation: Often debt becomes so problematic because monthly payments can take up the majority of your disposable income. This becomes even more challenging when those monthly payments are mostly interest, meaning that you are making very little principle payments overall. With a debt consolidation these payments are all combined into one manageable monthly payment, often with far lower interest. That being said, debt consolidations are often options only for those with credit in somewhat good standing.

    Consumer proposal: Once your monthly payments become so large that you are often unable to meet them all, collection agencies may begin calling. A consumer proposal is a smart debt management program that allows you some relief from your debt obligations by lowering the amount you are required to pay back. Done in negotiation with a bankruptcy trustee, a consumer proposal leaves you with one monthly payment, freezes interest accumulating on debt and also stops collection action being taken against you. Consumer proposals are administered by bankruptcy trustees. It is important to note that trustees do not represent the bankrupt; they act to make a fair financial arrangement between you and your creditors. Never visit a trustee without your own representation. You want to work with someone with expertise in consumer proposals and bankruptcies to get a plan together and you should be able to count on your representative to negotiate with the trustee on your behalf.

    Bankruptcy: If you have found that your monthly debt repayments far surpass your monthly income, and that you can’t keep up, bankruptcy might be the best option for you. Like a consumer proposal a bankruptcy must be conducted with a bankruptcy trustee, but it can leave you with relief from collection calls or wage garnishments. A bankruptcy can decrease your credit score, but if you are considering this option you have likely already damaged it.

    Credit counselling: Credit counselling organizations are not-for-profit organizations where you make a single monthly payment to them which they distribute to your creditors. Credit counselling repayment terms can be long and grueling and credit counselling programs can result in significant damage to your credit.

    Getting out of debt can be tricky, but you don’t have to do it alone. Ease the stress by choosing a debt management program in consultation with a professional debt consultant.

    For more information about how a debt management program might be the solution to your financial problems, please contact DebtCare Canada today by calling 1-800-890-0888.

  • Can You Really Trust An Ontario Bankruptcy Trustee

    Ontario Bankruptcy TrusteeBefore you can determine if you can trust an Ontario bankruptcy trustee, you first have to understand what an Ontario bankruptcy trustee is and what his or her role in a bankruptcy or consumer proposal is.

    An Ontario bankruptcy trustee is an individual or a corporation that is licensed by the Superintendent of Bankruptcy. Bankruptcy trustees are regulated federally. The role of an Ontario bankruptcy trustee is to administer bankruptcies and proposals, administer the estates of the bankrupts, hold in trust and subsequently distribute the assets of the bankrupt. The bankruptcy trustee must follow the Bankruptcy and Insolvency Act (BIA).

    The bankruptcy trustee is to be impartial and act in the best interests of both the bankrupt and the creditors. The same is true whether you are filing a consumer proposal or a bankruptcy. In the case of a bankruptcy, the bankruptcy trustee can oppose your discharge if you have not fulfilled your obligations under the bankruptcy. These obligations can change over the course of your bankruptcy and/or as a result of undisclosed information at the time you filed for bankruptcy. In layman’s terms, if you incorrectly estimate the value of an asset, forget to tell the trustee that you have a particular asset or in the middle of your bankruptcy you get a better job, this may change your monthly payment in bankruptcy and the length of time you are bankrupt – the bankruptcy trustee will make this determination.

    In the case of a consumer proposal you don’t have an ongoing obligation to the bankruptcy trustee like you do in a bankruptcy. With that said, the bankruptcy trustee assesses the proposal they will offer your creditors based on extracting maximum value for your creditors.

    So the answer to the question “can you trust an Ontario bankruptcy trustee” is yes. They are a licensed, regulated officer of the court. However, now that you know the role a trustee plays in a bankruptcy or consumer proposal, it may not be wise to approach him or her directly, no matter how warm and fuzzy the advertising is.

    Consumer proposals and bankruptcies are good options for getting out of debt and starting off on a fresh footing, but before jumping to this conclusion it is important to consider all of your financial options. Working with a qualified financial consultant that is experienced working with debt consolidation, mortgages, debt settlements, consumer proposals and bankruptcies will make you aware of these options. A financial consultant who is hired by you to represent your financial interests will ensure that you can be open and honest about all of your finances, ask questions that won’t impact you and assess a host of different financial choices. He or she can also line you up with the appropriate professionals (this includes bankruptcy trustees if necessary) and represent you through the process. This takes the burden off of you and ensures that you walk away with the best possible deal. In the case of a consumer proposal you could save thousands of dollars.

    If you are struggling with a financial problem and would like to review your financial options contact DebtCare Canada at 888-890-0888 or visit www.debtcare.ca.

  • Debt Relief in Canada Blog Series Part 1 – Is a Consumer Proposal the Answer?

    Debt relief in Canada is a subject that is constantly in the news for many reasons, whether it is the government reporting on the fact that Canadians are carrying historically high levels of debt, reporting on debt reduction companies and what to watch out for, reporting on changes to CMHC lending guidelines to stop those who are loaded with debt from buying homes that they really can’t afford, and more…

    Unfortunately, most people who have too much debt don’t realize that they have a problem until managing minimum payments starts to become challenging, resulting in a debt problem turning into a debt emergency. There are many options for debt relief in Canada, but each one is different, and the right one for you will really depend on your own personal circumstances.

    Making a consumer proposal is one option for debt relief in Canada, but the question is: is a consumer proposal the answer?

    A consumer proposal is a type of proposal that is made to your creditors and is administered by a bankruptcy trustee who represents both you and the creditors that are included in your consumer proposal. Consumer proposals are crafted based on your ability to repay your debt realistically. Consumer proposals are repaid monthly, usually over a period of 3-4 years. With that being said, a consumer proposal can be paid off sooner if your financial situation changes. Consumer proposals are removed from your Equifax credit report 3 years from the date that they are paid in full, which provides a further incentive for those who are in a consumer proposal to pay it off early. Because consumer proposals allow you to make a single monthly payment that fits within your budget and enables you to rebuild your credit faster, consumer proposals are a very popular option for debt relief in Canada.

    Since consumer proposals are based on your ability to make a monthly payment and not on your total debt load, oftentimes consumers can reduce their overall debt through a consumer proposal. In a simple, very general example, if your total unsecured debt is $20000 and you can afford to pay $200 per/month for 5 years based on your budget and the consumer proposal guidelines, the total value of the consumer proposal would be $12000, meaning you would reduce your debt by $8000. Each case is different, and your consumer proposal must be fair to your creditors as they have a say as to whether or not they will accept it.

    When you make a consumer proposal, your creditors will receive your consumer proposal by mail and have 45 days to respond and vote as to whether they accept or reject your proposal. If a creditor does not respond to the consumer proposal within 45 days, they lose the ability to vote and the proposal is considered accepted. In addition, if the majority of your creditors accept the consumer proposal, it will be approved.

    Consumer proposals are suited to individuals who have higher incomes, as they are subject to surplus income in bankruptcy.  When a consumer has surplus income his or her payment in bankruptcy will be much higher and this is what makes a consumer proposal a more attractive option for a higher income earner. Consumer proposals are also better suited to an individual who has some secured creditors and to someone who has the ability to repay a good portion of his or her debt but simply cannot manage the contractual payments that they currently have with creditors.

    For more information about options for debt relief in Canada or to see if you qualify for a consumer proposal please call DebtCare at 416-903-4000 or visit www.debtcare.ca.

  • What is a Bankruptcy Trustee in Ontario and What is Their Role in a Debt Restructuring?

    A Bankruptcy Trustee in Ontario plays an important role when it comes to debt restructuring. Bankruptcy Trustees across Canada are appointed by the Superintendent of Bankruptcy to oversee bankruptcy and consumer proposal filings in Ontario.

    It is important to understand what a bankruptcy trustee in Ontario is and what his role is with regard to debt restructuring before going to see one directly. The most significant fact that you need to be aware of is that the trustee administers the estate of the debtor as its legal representative, but his financial incentive when a bankruptcy or consumer proposal is filed is to maximize the return to the creditors.

    What does this mean to you? Well, when you go to see the Bankruptcy Trustee to make a full financial disclosure, it is no different than going to your creditor to make a financial disclosure. Keep in mind; the role of the Bankruptcy Trustee is to obtain the greatest possible amount of money from you, all to the benefit of your creditors.

    Bankruptcy and consumer proposals have, to some extent, become an industry of their own in Ontario. The Bankruptcy Trustee is a court-appointed officer and is supposed to take a neutral role in your bankruptcy or consumer proposal filing; however, they are frequently advertising in the mainstream media as a safe place for you to go for counsel when struggling with debt. This could not be further from the truth.

    The truth is, visiting a Bankruptcy Trustee is no different than speaking to the CRA directly about your tax problem without representation from an accountant or a tax lawyer.

    When you go to a Bankruptcy Trustee, he or she will ask for complete financial disclosure with regard to your income, assets and liabilities. They will try to find as much income and liquidity as possible to drive up the amount of your bankruptcy or consumer proposal, all to the benefit of your creditors. We surmise that in some cases, also to the benefit of their own fees.

    Another challenge is that in many cases a consumer will unwittingly omit information when they file for bankruptcy. The Bankruptcy Trustee will often accept whatever information you provide based on your word. Once the bankruptcy or consumer proposal has been filed, the trustee will then engage in a rigorous and determined process to validate your disclosures. If the trustee finds additional income or assets, he or she will adjust the amount of money that you have to pay. In the case of a bankruptcy, what begins as a predetermined length of repayment may snowball into a seemingly endless repayment. You will not be able to get discharged until you have paid the Bankruptcy Trustee all of the money that the trustee believes you owe.

    Just as there are accountants and tax lawyers who represent people when they have a tax problem, there are financial consultants who can represent you if you have a debt problem. They can prepare your information, educate you about your choices, administer your paperwork and hold your hand through the process of a bankruptcy or consumer proposal, ensuring that you get a fair deal that protects you.

    For more information about Bankruptcy Trustees in Ontario, their role in a debt restructuring or to get representation in a bankruptcy or consumer proposal please contact Michael Goldenberg at DebtCare Canada by calling 416-907-2582 or visit www.debtcare.ca