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What Is A Bankruptcy Trustee
What is a Bankruptcy Trustee
Why do you need a trustee?
Bankruptcy is a delicate matter involving both financial and emotional factors for creditor and debtor. The involvement of a reliable and independent trustee in the process will aid the speedy resolving of the issue. Superintendent of Bankruptcy has the power to appoint a person as trustee in a bankruptcy case. The bankruptcy trustee is paid a sum of money for his services by the debtor and the fee is decided by government regulations. The rules also imply that the debtor must disclose all details to the trustee and any attempt to withhold any information will damage the bankruptcy process.
The powers and duties of a trustee
The trustee�s main duty is to oversee the process and his priority goes to the creditors. He has the power to choose which creditor must be benefited first. He meets all the creditors and collects their claims. He analyses and estimates the value of all the assets of the debtors. He has the authority to liquidate any assets belonging to the debtor. He settles the claims of creditors based on the money from selling the debtor�s assets. He also gives counseling and guidance to the debtor. The bankruptcy trustee should balance both the creditor and debtor considerations. The work of the trustee varies greatly depending on the case and the number of creditors for the bankrupt.
Trustee is like a friend
Even though the trustee has been appointed mainly for the creditors, the debtor can avail some of his services in these testing times. The bankruptcy trustee can give proposals to bail you out with debtors. He is the chief architect behind any settlement agreements that might be reached between the parties. These trustees undergo a three year course on the subject and must be approved by RCMP in order to receive a trustee license. They are the best debt consultants in Canada and they are far cheaper than other consultants who charge an exorbitant price.
Limits of Trustee�s powers
The government lays down some restrictions on the trustee�s power. This is to ensure that the debtor is not stripped of whatever he owns and does not suffer afterwards. Life insurance is exempt from the privy of the bankruptcy trustee. He is also restricted from accessing your social insurance number and does not have power to garnish your pay check. The fee for the trustee does not change according to the paycheck. The trustee also can leave your primary residence alone if it is owned by you.
A critical job
The work of a bankruptcy trustee is very challenging and involves so much of balancing work. He needs to please everyone and make sure everyone involved are dealt fairly. These trustees are essential to any bankruptcy process. Since Canadian law stipulates that the trustees should be trained, the process will be carried out in a professional manner. There are lawyers who are solely involved in dealing bankruptcy cases and they get paid handsomely. These trustees are the key stone for the bankruptcy and ensures that all�s well that ends well.
Why do you need a trustee?
Bankruptcy is a delicate matter involving both financial and emotional factors for creditor and debtor. The involvement of a reliable and independent trustee in the process will aid the speedy resolving of the issue. Superintendent of Bankruptcy has the power to appoint a person as trustee in a bankruptcy case. The bankruptcy trustee is paid a sum of money for his services by the debtor and the fee is decided by government regulations. The rules also imply that the debtor must disclose all details to the trustee and any attempt to withhold any information will damage the bankruptcy process.
The powers and duties of a trustee
The trustee�s main duty is to oversee the process and his priority goes to the creditors. He has the power to choose which creditor must be benefited first. He meets all the creditors and collects their claims. He analyses and estimates the value of all the assets of the debtors. He has the authority to liquidate any assets belonging to the debtor. He settles the claims of creditors based on the money from selling the debtor�s assets. He also gives counseling and guidance to the debtor. The bankruptcy trustee should balance both the creditor and debtor considerations. The work of the trustee varies greatly depending on the case and the number of creditors for the bankrupt.
Trustee is like a friend
Even though the trustee has been appointed mainly for the creditors, the debtor can avail some of his services in these testing times. The bankruptcy trustee can give proposals to bail you out with debtors. He is the chief architect behind any settlement agreements that might be reached between the parties. These trustees undergo a three year course on the subject and must be approved by RCMP in order to receive a trustee license. They are the best debt consultants in Canada and they are far cheaper than other consultants who charge an exorbitant price.
Limits of Trustee�s powers
The government lays down some restrictions on the trustee�s power. This is to ensure that the debtor is not stripped of whatever he owns and does not suffer afterwards. Life insurance is exempt from the privy of the bankruptcy trustee. He is also restricted from accessing your social insurance number and does not have power to garnish your pay check. The fee for the trustee does not change according to the paycheck. The trustee also can leave your primary residence alone if it is owned by you.
A critical job
The work of a bankruptcy trustee is very challenging and involves so much of balancing work. He needs to please everyone and make sure everyone involved are dealt fairly. These trustees are essential to any bankruptcy process. Since Canadian law stipulates that the trustees should be trained, the process will be carried out in a professional manner. There are lawyers who are solely involved in dealing bankruptcy cases and they get paid handsomely. These trustees are the key stone for the bankruptcy and ensures that all�s well that ends well.
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