Bankruptcy Trustee

The Bankruptcy Trustee Role

A Trustee in Bankruptcy is a person holding a license issued by the Office of the Superintendent of Bankruptcy giving him the rights to administer bankruptcies and proposals. The trustee in bankruptcy ensures that the debtor’s (the person with debts) and the creditors (those who lent money) rights are respected.

The Bankruptcy Trustee’s duties

• Review the situation and counsel the debtor on available alternatives;
• Prepare official documentation that is both filed with the OSB and used to notify creditors;
• Ensure the validity of creditors' claims;
• Ensure that debtors are provided with mandatory counselling and access to mediation services if there is a dispute regarding any income they are required to contribute;
• Sell the debtor's assets, except those exempt from seizure under provincial and federal laws, and hold the proceeds in trust for distribution to creditors;
• Administer the bankrupt estate from beginning to end;
• Assess the debtor's conduct both before and during a bankruptcy, as well as the cause(s) of the bankruptcy; and
• Make an application for a debtor's discharge (in the case of individual debtors).