A bankruptcy trustee in New Brunswick or any other province in Canada for that matter is an individual who is licensed to administer bankruptcy actions. The same individual can offer debt counselling and help make proposals and negotiated settlements with creditors in an effort to avoid bankruptcy.
The fees that a federally licensed trustee can charge are regulated and are based on the family size; income as well as the value of the assets which are considered exempt. Because trustee fees are regulated using one is often less expensive than using debt management or debt solution professionals. The trustee is an officer of the court; this ensures that the applicant’s rights are looked after as well as the rights of the creditors.
A bankruptcy trustee in New Brunswick has a number of responsibilities, which include:
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Debt review and counselling, offering various alternatives to bankruptcy
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Preparing all required documentation and advising creditors that bankruptcy action has been filed
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Confirming creditor claims about what is owed
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Disposing of all assets other than those that are exempt from seizure and distributing the proceeds from the sale of all non-exempt assets to the creditors
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Evaluating the cause of the bankruptcy and an evaluation of the applicants conduct during the process
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Administering any bankruptcy estate; assets held in the estate will be sold, the proceeds are used to help pay down outstanding debt
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Apply for discharge, once discharged the bankrupt is released from all debt and is given an opportunity to start afresh.
Although a bankruptcy trustee in New Brunswick sees the bankrupt through the process, he or she is also a professional debt consultant. No one wants to see a person file for bankruptcy if it can be avoided; as such the trustee is in a position to offer alternatives. It is in the best interest of the creditor if the debt is paid, even though it will be later rather than sooner. The trustee can assist in preparing a reasonable proposal to the creditors which if accepted results in a legally binding agreement. In other cases the trustee can help negotiate a settlement that eliminates the debt for a partial payment.
A bankruptcy trustee in New Brunswick is highly skilled, most of which are accountants. Before being granted a license the individual must complete a three year bankruptcy and law course which is very rigorous and then undergo investigation by the RCMP; then and only then will a license be granted.
Bankruptcy is a complex procedure and is something that should not be attempted by a layperson. If you are looking for a bankruptcy trustee in New Brunswick you are invited to contact Powell Associates Ltd.
