What's A Trustee?
D. Thode & Associates Bankruptcy Trustee
D.Thode and Associates has offices in Kamloops, Kelowna, Burnaby, Surrey, Vancouver, Chilliwack and Penticton
What is a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee (“LIT”), formerly known as a Trustee in Bankruptcy or a Bankruptcy Trustee, is a federally regulated professional who is licensed by the Office of the Superintendent of Bankruptcy (“OSB”) to administer federally legislated options. These options include bankruptcy and consumer proposals.
Does A Trustee Have To Meet Minimum Requirements To Process A Bankruptcy?
Yes. Insolvency Trustees across Canada , must meet certain qualifications to obtain their license which include: being of good character and reputation, being solvent, successfully completing the qualification program, passing the national insolvency exam, passing an oral board examination, passing the insolvency counsellor’s qualification course and obtaining a minimum of 2,400 hours of insolvency experience while they are in the program.
What does a Licensed Insolvency Trustee do?
Licensed Insolvency Trustee’s (“LITs”) or Bankruptcy Trustees are federally regulated professionals who provide information and services to individuals and businesses who are experiencing financial difficulties.
LITs are licensed by the federal government to administer the debt relief options available through various legislation including the Bankruptcy and Insolvency Act. The LIT is responsible to file, manage and monitor the filings made under the Bankruptcy and Insolvency Act such as Bankruptcies or Consumer Proposals
Other Questions We Often Get Asked.
Who pays for a Licensed Insolvency Trustee (Bankruptcy Trustee)?
In most cases, the person declaring bankruptcy is responsible for pay for the costs associated with filing bankruptcy. There are three components that will determine the cost:
- Minimum administration costs of the Trustee;
- Surplus income payments if applicable;
- Assets that you either pay to keep or are sold during the administration.
Fees can be paid by a friend or relative on the bankrupt’s behalf.
How does a Trustee find hidden assets?
- A creditor is aware of the asset and advises the Trustee;
- A personal contact of the bankrupt advises the Trustee;
- Other means such as an examination under oath of the bankrupt or a personal or a professional contact;
- Reviewing records of the bankrupt which provides evidence of an asset.
Can a Trustee search your home?
It’s highly unusual for a Trustee to attend a bankrupt’s home to inspect or take possession of an asset. However, under specific and rare circumstances, it can happen. In most cases, you would deliver your assets to the Trustee who would then sell them and distribute the funds to the creditors.
Does a Trustee check bank accounts?
The Trustee normally requests a recent bank statement as part of the verification process. If they require more, they will request you provide it to them, or they can request the information directly from the bank.
How far back does the Licensed Insolvency Trustee (Bankruptcy Trustee) look?
This depends on the type of transaction and the relationship between the parties. Depending on the situation, the Trustee can review certain transactions that are three months, twelve months or five years preceding the bankruptcy filing.
Can I file for bankruptcy without the use of a Licensed Insolvency Trustee?
No. A Licensed Insolvency Trustee is the only professional licensed by the Federal Government to prepare and file a bankruptcy assignment or a consumer proposal.