When you hear the job title ‘Bankruptcy Trustee’, you probably assume they only administer bankruptcies, right? This is actually a common misconception. The truth is, Bankruptcy Trustees are licensed professionals that are here to help you overcome your debt challenges – and not necessarily by filing bankruptcy.
In Canada, Bankruptcy Trustees are the only people licensed to administer and file consumer proposals, as well as bankruptcies. After several years of education and experience, Bankruptcy Trustees are issued a license by the federal government’s Office of the Superintendent of Bankruptcy. Once they’ve gone through a lengthy education process, a prospective Bankruptcy Trustee sits before an oral Board of Examiners and if successful, receives their license to act as a Bankruptcy Trustee.
The technical name for the designation is Bankruptcy Trustee because Canadian law requires it to be. But in reality, Bankruptcy Trustees do much more. They are also trained credit counsellors and debt consultants. The law requires Bankruptcy Trustees to educate you on all of the debt relief options available to you, both statutory and non-statutory.
A Bankruptcy Trustee will administer the proposal or bankruptcy process impartially, ensuring that all the rules and laws are followed. They are Officers of the Court, there to ensure that the rights of the debtor are not abused while also protecting the rights of the creditors. A Bankruptcy Trustee is also the only licensed role in Canada to act as a Receiver or Monitor under Companies’ Creditors Arrangement Act (CCAA) proceedings by corporations.
When you work with MNP Ltd.’s Bankruptcy Trustees, we actually start the process by providing a free, initial assessment of your debt situation. At that initial meeting, we will listen to your personal circumstances and help you to assess your options. Our Bankruptcy Trustees ensure you understand the process that you ultimately choose – whether it’s a consumer proposal, bankruptcy or another solution – and then in our role as certified Credit Counsellors, help you begin the process of rebuilding your financial standing.
