Bankruptcy Trustees in Canada usually refers to corporations or persons who are legally authorized to distribute the existing assets of a bankrupt among all of his creditors or to hold them in trust. The distribution of assets among the creditors is carried out by the trustee in accordance with the laws and rules established by the BIA or the distribution system of the Bankruptcy and Insolvency Act. The official superintendent is authorized to authorize the trustee in bankruptcy and to authorize the distribution of property.
Roles and responsibilities of a trustee in bankruptcy
Once trustees in bankruptcy have the legal right to access the property and assets of the bankrupt, the insolvent person and any person with an interest in the property and assets of the bankrupt must transfer the property and property to the trustee bankruptcy.
It is also the responsibility of the trustee to assist the bankrupt in presenting and preparing a consumer proposal for creditors. The trustee in bankruptcy must make the necessary arrangements to obtain advice on credit or credit for the person in bankruptcy.
Trustees in bankruptcy can not violate the rules of the Bankruptcy and Insolvency Act and are required by law to follow the procedures of the BIA. The trustee is also responsible for summoning creditors to meetings and sending notices and pleadings to the parties concerned.
The trustee has the full right to oppose the discharge of the bankrupt and is also required to prepare the report prior to the bankrupt's release.
Common duties of trustees in bankruptcy
They are responsible for distributing funds to creditors, selling non-exempt assets, chairing creditors' meetings, checking files to detect fraudulent preferences, auditing transactions and letting them know. 39, opposition to the release of the bankrupt.
A trustee in bankruptcy is also responsible for convening the first meeting of creditors for a number of reasons. These objectives include the appointment of inspectors, the affirmation of the appointment of the trustee or some sort of substitute therefor, the review of the bankrupt's affairs and the provision of directions and orders to the trustee in bankruptcy. purposes of the proper administration of the estate.
The trustee in bankruptcy acts as the representative of the court in bankruptcy. His responsibility involves the examination of all the documents that the debtor has produced, the monitoring of the claims, the verification of the validity of these claims and the verification of the bankrupt's ability to qualify in the classified class.
The trustee's job is to protect the integrity of the bankruptcy system. The trustee also decides which assets of the debtor must be sold to pay off debts, manages this sales process and takes possession of the non-exempt assets of the debtor.
A word of warning
If a bankrupt person intentionally provides false information to trustees or withholds valuable information from their trustees, they may be subject to criminal prosecution and their case may be closed.
The bankrupt person may also have to prepare for an investigation opened by the government on alleged bankruptcy fraud charges. In contrast, trustees in bankruptcy, even individuals, may be subject to audit for breach of the law or ethics or for breach of fiduciary duties.
Do not do it if you can help it. That said, I know that the relief felt by indebted families can be very restorative. Good luck.