How to find the right Licensed Insolvency Trustee

^{By Michelle Statz Bromwich+Smith Staff | 1064 words | Reading Time: 5 minutes | Date: 2023/06/22}

Finding the right licensed insolvency trustee is crucial for individuals considering bankruptcy or insolvency proceedings. We understand that the process is an emotional journey, and finding someone that you trust and can build a secure relationship with is important. Your relationship with your Trustee should be one that includes open dialogue and communication.  The relationship should not be adversarial.  The trustee is there to assist you to complete your duties while ensuring that the rules and legislation are followed appropriately by all parties.  The Trustee also has certain duties under the legislation regarding the gathering of information and it will be important to have open and honest communication with your Trustee in that regard.  Based on that, the relationship with your trustee should be a very positive one. 

LITs will come with a variety of expertise and experience. Insolvency trustees are professionals with specialized knowledge and experience in the field of bankruptcy and insolvency. A Trustee is licensed and appointed by the Federal Government and is responsible for administration of processes under the Bankruptcy and Insolvency Act.  If an individual wants to file a bankruptcy or a consumer proposal for example, they must enlist the services of a Trustee in order to do so.  No other individual can assist in this regard. Bankruptcy and consumer proposals involve compliance with various legal requirements and regulations. The right insolvency trustee will have a thorough understanding of these requirements and ensure that the process is conducted in accordance with the law. 

Consider your Trustees reputation and trustworthiness. Look for a trustee with a good reputation in the industry, positive client reviews, and a track record of successfully handling similar cases. It is important to be comfortable with your Trustee and you are likely to get a sense of that in your initial phone call with that individual.  While a trustee must be impartial and objective, they should also be empathetic which quality should come across in your initial discussion.   The trustee is also likely to have a team assisting them and so you could also ask in your initial call about who else in their office you may need to have contact with and what that team environment might look like.  There will be financial counselling sessions and you could inquire about those qualified individuals as well. 

How do I know if I need a trustee?

An individual can consult with a Trustee typically for no charge with a view to reviewing their financial situation and their options available.  A Trustee will be able to provide information on all options and not just the formal processes under the Bankruptcy and Insolvency Act.  It is important to note that a Trustee takes an objective and impartial role and will help the individual understand if they need the services of a trustee.  As mentioned that consultation with a trustee is typically free and confidential. 

What is my relationship with my trustee throughout my filing? 

If you are filing a consumer proposal or a bankruptcy, you receive protection from your creditors and in essence the Trustee will take their place.  You will then communicate with your Trustee instead of any unsecured creditors.  The Trustee will have a duty to administer the process as per the Act, as well as they will be responsible for communicating with the creditors throughout the process.  In a consumer proposal that means for the duration of the term of payments, five years maximum.  In a bankruptcy it could be 9 months up to 36 months depending on whether or not it is your first time, and your level of income.  Either way the Trustee is in place throughout that entire process until the individual completes the process.  It is important to note the trustee is not your advocate (as a lawyer would be), but the trustee is there to assist you through the process and through to completion of your duties. 

As you can see, your Trustee will become a big part of your financial future, and you will remain with the same trustee throughout the duration of your debt relief program. You will need to have open and honest two way communication, so it is important to find someone that you feel comfortable with. Read the reviews, and make informed decisions about your next steps  
Sara can we link to our google reviews anywhere on this blog? 

Bromwich+Smith has a team of specialists who are ready to talk to you about yourdebt relief options. Reach out today for a free, confidential, non judgemental consultation to see if you qualify for debt relief programs. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, or request a call back at contact us page.     

1: What qualities should I look for in a licensed insolvency trustee (LIT)? 

When selecting a licensed insolvency trustee, consider the following qualities: 

Reputation and trustworthiness: Look for trustees with a good industry reputation, positive client reviews, and a track record of successfully handling cases similar to yours. 

Expertise and experience: Ensure the trustee has specialized knowledge and experience in bankruptcy and insolvency matters. They should be well-versed in the legal requirements and regulations governing the process. 

Communication and empathy: Your trustee should have open and honest communication skills, be empathetic towards your situation, and foster a positive relationship. During your initial call, assess their approachability and willingness to listen. 

Team support: Inquire about the trustee's team and the other professionals who will be involved in your case. It's important to know who you may need to contact and the support structure available to you, including financial counselors. 

2: How can I determine if I need a trustee? 

Individuals can consult with a licensed insolvency trustee for a  confidential review of their financial situation and available options. The trustee will objectively assess your circumstances, provide information on all available options, and help you understand if you require the services of a trustee. With Bromwich+Smith, this consultation is always free, with no obligation.  

3: What is my relationship with my trustee throughout the filing process? 

If you file a Consumer Proposal or Bankruptcy, your trustee will take on the role of protecting you from creditors. During this time, you will communicate with your trustee instead of your unsecured creditors. The trustee's responsibilities include administering the process according to the law, communicating with creditors, and guiding you through your duties. It's essential to note that while the trustee is not your advocate, they are there to assist you and ensure the completion of your obligations. 

By Michelle Statz, Licensed Insolvency Trustee at Bromwich+Smith
Michelle has been in the insolvency industry since 2001, as an Administrator initially, subsequently receiving her Chartered Insolvency and Restructuring Professional (CIRP) designation in 2013 and becoming a Licensed Insolvency Trustee (LIT) in 2015.  Michelle consults with individuals regarding their personal and/or business financial situations, providing information as to options available in that regard.  Michelle is passionate about assisting individuals and the destigmatization of discussions about debt.  She believes in the insolvency system in Canada that allows individuals to obtain a fresh start when there are no other solutions.  Michelle enjoys presenting on financial literacy topics including budgeting and legislated options, as well as speaking with the media on these issues.