What is a Licensed Insolvency Trustee?
A Licensed Insolvency Trustee is a person who is licensed by the federal government to administer bankruptcy and consumer proposals in Canada. They are regulated by a division of Industry Canada called the Office of the Superintendent of Bankruptcy (the OSB).
The website of the Office of the Superintendent of Bankruptcy describes the primary duties of the Trustee as follows:
- 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 by 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
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