When it comes to filing for bankruptcy, it may seem like you have to learn a whole new vocabulary when all you want to do is get out of debt. Feelings of frustration are understandable, and we’re here to help. For starters, we will explain the difference between a bankruptcy lawyer and a licenced insolvency trustee.
Licenced Insolvency Trustee
Your bankruptcy filing will be handled by a Licensed Insolvency Trustee (previously known as a Trustee in Bankruptcy). The Licensed Insolvency Trustee is licensed by the Federal Government to administer bankruptcies or Proposals within Canada Their role is to administer the Bankruptcy and Insolvency Act carrying out their duties helping insolvent debtors obtain their discharge in accordance with the Act as well as to collect and distribute funds to the bankrupt’s creditors in accordance with the provisions of the Bankruptcy and Insolvency Act..
Bankruptcy lawyers deal almost exclusively with commercial bankruptcy filings, and conflicts that may arise between various creditors. Bankruptcy Lawyers may also appear at the bankrupt’s discharge hearing acting for the opposing party or acting for the bankrupt. Lawyers advocate on behalf of their clients to contest the positions of the opposing counsel; a skill that is important when dealing with a business with hundreds or even thousands of creditors.
Do You Need a Bankruptcy Lawyer or a Licenced Insolvency Trustee?
In most cases of personal bankruptcy, the circumstances are pretty straightforward. An Insolvent debtor contacts a Licensed Insolvency Trustee who assists him with the preparation and the filing of the necessary paperwork to start the bankruptcy process. Bankruptcy Lawyers may assist their clients with the collection of the data required but only the Licensed Insolvency Trustee can file prepare and file these documents.
If you are an individual needing assistance to get out of debt, the professionals who will best help you are licenced insolvency trustees. In the unlikely event that further legal counsel is required, the trustee administering your bankruptcy case will help you better understand why, and what you need to do next. In some cases, you may be able to avoid filing for bankruptcy altogether with alternatives like consumer proposals.
The professionals at D. Thode and Associates are here to help you navigate the waters of getting out of debt. From our offices in Kamloops and Kelowna, we can serve clients from all over Interior BC. Contact us today for debt help!