BDo - Canada's most used bankruptcy Trustees
In Canada, a Trustee in Bankruptcy (also known as a Bankruptcy Trustee) is a person licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer bankruptcy proceedings. A trustee in bankruptcy can also provide debt counselling, negotiate settlement agreements on your behalf and help you make a proposal to your creditors to consolidate debt and avoid bankruptcy. Trustee fees are regulated by the federal government and, therefore, can often cost less than other debt management consultants or debt solution providers.
As an officer of the court, the trustee has an obligation to look after the rights of the creditors and to investigate your situation, as required. The trustee also ensures that your rights are not abused.
A trustee in bankruptcy in Canada is responsible for:
Reviewing your situation and counselling you on available alternatives
Preparing official documentation that is filed with the OSB and also used to notify creditors that you have filed for bankruptcy
Ensuring that the creditor’s claims about what you owe are valid
Ensuring that you are provided with mandatory credit counselling and access to mediation services to help with negotiations, if there is a dispute regarding any surplus income that you are required to contribute as part of your bankruptcy
Selling your assets, except those exempt from seizure by provincial and federal laws, and distributing the proceeds from the sale to your creditors
Administering your bankruptcy estate file, which includes all of your legal and equitable interests, from beginning to end; assets held in a bankruptcy estate are usually sold by the trustee in order to help contribute to your outstanding debt
Evaluating your conduct both before and during a bankruptcy, as well as the cause(s) of the bankruptcy
Making the application for your discharge from bankruptcy, which will release you of your debts and give you a fresh start
Personal bankruptcy and other bankruptcies are governed by Canada’s Bankruptcy and Insolvency Act. You must use the services of a trustee to file for bankruptcy.
How to become a trustee in bankruptcy
Helping Canadians relieve their financial stress and get on the road to financial stability is incredibly rewarding. Bankruptcy trustees are the most educated and highly trained of all professional credit or debt counsellors. To be eligible to become a licensed trustee, you must:
Have either a Canadian university degree or its equivalent, or a minimum of five years of relevant work experience (if you hold a relevant professional designation recognized in Canada, you are also eligible)
Successfully completed the CIRP Qualification Program (CQP), a three-year course administered by the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), that culminates in a written examination known as the National Insolvency Examination (NIE), which you must pass to be invited to take the Oral Examination
Complete the BIA Insolvency Counsellor's Qualification Course, a CAIRP program that is essential training for all future trustees
If you are interested in pursuing a career as a trustee in bankruptcy, contact Canadian Association of Insolvency and Restructuring Professionals (CAIRP) for more information or visit the website of the Office of the Superintendent of Bankruptcy.