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What is a Trustee in Bankruptcy?

Why do you need one.

How does bankruptcy work and how it will help you
Going bankrupt is a solution to your money problems. It erases most of your debt and gives you a clean fresh start.

Trustees administer consumer bankruptcies, and formal and informal proposals.

The Trustee represents your creditors and is an officer of the court.  The Trustee's duty is to protect your creditors first, and you second.

 A Trustee in Bankruptcy must be licenced by the Federal  Superintendent of Bankruptcy (an Officer of the Federal Government)




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What can a Trustee do to assist you with your financial problems?

How a Trustee helps you solve your financial problems

What Does a Trustee Do?


Your Trustee will do the following for you:


  • Evaluate your immediate problem such as total debt, collection problems, garnishees, judgments, creditor pressure
  • Determine your overall financial situation and your ability to pay;
  • Review your rights and responsibilities as well as what rights and responsibilities your creditors' have.
  • Provide you with options such as . managing finances better, budgeting, debt consolidation, orderly  payment of debts, proposal to creditors and bankruptcy.
  • Make sure you understand all of  the options available
  • Recommend certain options over others.

You should ensure that your  Bankruptcy Trustee is fully qualified and accredited by the Federal Government's Superintendent of Bankruptcy


Ask the Trustee what documents will be required for your initial assessment meeting to save time.

Your Trustee must have the following documents and information to properly evaluate your situation.

You must provide all the needed documents in order to proceed with solving your financial problems

  • Vehicles: Copy of vehicle registration
  • Real Property:  Copy of land title registrations and assessments
  • Agreements:  Copies of any security documents, such as mortgages, loan agreements, sales contracts, lease contracts,   writs, judgments, garnishees, wage assignments, divorce, separation, and maintenance order(s), child support, alimony
  • Life Insurance:  Copies of all life insurance policies
  • Credit Cards:  All credit cards must be turned over to the Trustee, including those which may have zero balance.
  • List of all stocks, bonds, securities, RRSP's and similar assets
  •  All pertinent financial documents statements.
  • Pay Stubs:  Copy of last months pay stubs. If you are or were on Employment Insurance please supply all stubs for current year.
  • Income Tax Information: Copy of last tax return filed.
  •  If you have not filed up-to-date, please provide information for Trustee to file any previous years returns   (T4's, Receipts, etc.).
  • Any maintenance/child support payments.
  • Two pieces of photo identification

How Will You Pay the Trustee's Fees?

  •  Retainer, paid in advance, to the Trustee
  • Monthly payments to the estate
  • Income tax refunds
  • Third party deposit with the Trustee
  • Sale of assets before or during bankruptcy
  •  Any combination of the above

 It is important that you obtain a clear understanding of  what fees and payment arrangements have been agreed, prior to any assignment in bankruptcy

What is a Trustee in Bankruptcy.

Why do you need one?


Bankruptcy law says you are required to retain a bankruptcy trustee to handle all consumer bankruptcies including your financial affairs.


Once you declare bankruptcy all debt is frozen, creditors must stop harassing you instantly.  All collection calls and notices must end.


Your creditors must deal with your trustee, not you. Your financial problems and money problems are solved. The trustee will stop garnishees.


If you have bad credit, missed payments, no savings, no money to speak of, or are over your credit limits and living on overdrafts, you need to consider bankruptcy. Talk to a bankruptcy trustee. You will be glad you did.


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