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Spend even a few moments searching the Internet for information about getting help for severe debt burdens and you are likely to run across the term – licensed bankruptcy trustee.  However, Canadians who are willing to do almost anything to avoid declaring personal bankruptcy don’t always take the time to go beyond the title to see exactly who these trustees are and what they can do to help.  So, first, who are they?  And what can they do to help?

Because the word “bankruptcy” appears in their professional title many assume all they can do is help you declare bankruptcy, when in fact they are especially adept at helping you avoid bankruptcy.  The designation stems from the fact they are licensed by the Canadian government to administer both personal bankruptcies and the newer alternative program to bankruptcy – the consumer proposal. 

In reality, the nature of their work, their professional backgrounds and the rigorous training and educational requirements needed to become licensed makes them true debt solution consultants.  Here’s how:

First, if you’ve been roaming the net for ideas on how to stay out of bankruptcy you know they all begin with the same step – evaluating your current financial circumstances.  You can do that in one of three ways: 

• Do it Yourself
• Talk to a Credit Counselor/Debt Solution Company
• Talk to a Bankruptcy Trustee

First, you can take pencil and paper in hand and write down all you owe, all you own, all you make, and all you spend each month.  That’s not as easy as it sounds and even if you can capture all this information on your own you may not know how best to make use of it.  The first purpose of such a financial evaluation is to determine if you can get out of debt on your own.  Beyond that you have to go somewhere for help with alternatives.

Second, you have surely seen television commercials for credit counseling agencies and debt solution companies promising to get you back to financial health.  All begin with an assessment of where you are right now.  The question is, are they the best source of help you have?

Third, once you know a little more about who trustees are, you might come to the conclusion they are a source of help worthy of your consideration.  

Did you know to get licensed by the Office of the Superintendent of Bankruptcy a trustee has to complete five different levels of educational training?  Did you know each level requires approximately 100 hours to complete?  Did you know there are both written and oral final examinations before a license is granted?  Did you know it takes between 4 and 5 years to get a license?  Did you know most licensed bankruptcy trustees have professional certification and/or educational backgrounds in accounting?

While there are highly qualified credit counselors and debt solution advisors in the market, considering the extensive training trustees receive, you are more likely to find a higher level of expertise amongst trustees.  A final thing you need to know about a bankruptcy trustee has to do with professional ethics and behavior.  You may already know not all credit counselors and debt solution companies are reputable and honest.  A bankruptcy trustee has to undergo an RCMP background investigation before getting licensed and is regulated by the government.