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If you are considering filing for bankruptcy, or if you are already in the process, one person you will work very closely with during this time is your Alberta bankruptcy trustee.

What is a bankruptcy trustee?

A bankruptcy trustee is a licensed professional who provides a number of services, including financial counseling and management of assets during a bankruptcy. The trustee works to ensure your bankruptcy goes as smoothly as possible.

In order to become a bankruptcy trustee, a person must go through extensive training. Most trustees have university degrees that consist of a three-year bankruptcy and bankruptcy law course in order to become licensed. Additionally, they must stay abreast of changing rules and regulations through continuing education.

What does a bankruptcy trustee do?

The bankruptcy trustee works to protect both the creditor and debtor’s rights during a bankruptcy. While the trustee ensures your bankruptcy is handled fairly and efficiently, he or she is also concerned with recovering money for the creditor. The trustee’s main responsibilities include:

• Bankruptcy filing. The bankruptcy trustee is responsible for the actual filing of the bankruptcy. This includes filling out and gathering paperwork and filing legal documents.
• Handling of assets. The trustee is also responsible for selling your assets and distributing the money to the creditors to help pay off your debts. In this way, the trustee works for the creditor. Your trustee will also help you determine what you can and cannot keep in the bankruptcy.
• Financial counseling and advice. Perhaps one of the most valuable services a bankruptcy trustee provides is that of financial counselor. The trustee will sit down with you before filing the bankruptcy and get a clear picture of your financial situation to help you find out if there are options other than bankruptcy, such as a consumer proposal or payment plans with creditors. If you do go through a bankruptcy, your trustee will also help you organize your finances so you know how to avoid such financial problems again in the future.

A bankruptcy trustee is a trusted debt professional that will provide you with all of the information you need to determine if bankruptcy is the right option for you.  It’s important to work with a bankruptcy in your province that you have a good rapport with.  Initial consultations are usually free so you can contact more than one trustee until you find a good fit.