Bankruptcy Trustees: Who Are They And What Do They Do?

Bankruptcy Trustees


Who are bankruptcy trustees? If you’re struggling with your debt, you may have heard of these professionals who can help. In 2016, bankruptcy trustees were renamed Licensed Insolvency Trustees. Their job didn’t change, just their title. Bankruptcy trustees provide debt relief services to both consumers and businesses that owe more money than they can afford to repay.

Consumers facing high credit card debts, bank loans they can’t repay, bills they can’t pay, or extremely high interest rates on debts other than those with collateral (such as a car loan or mortgage), should speak with a bankruptcy trustee in their area about their options.

There are number of debt relief services with which a bankruptcy trustee can help you, including bankruptcy itself, consumer proposals, and credit counselling.


A bankruptcy trustee administers bankruptcy and consumer proposals from filing to discharge. They file your bankruptcy, check the accuracy of both your claims and your creditors’ claims as a neutral party, notify your creditors when you file, and manage the process to make sure creditors and the debtor honor the terms of the agreement. A bankruptcy trustee manages your payments, whether they’re monthly payments or proceeds from assets that you have to sell to pay back your creditors. Finally, a bankruptcy trustee applies for your discharge at the end of the process.

Consumer Proposals

One of the reasons bankruptcy trustees were recently renamed as Licensed Insolvency Trustees is that the nature of insolvency is changing. Over half of all insolvencies in Canada are now consumer proposals rather than bankruptcies. That’s because consumer proposals are a compelling alternative for those who have assets they do not want to part with, including secondary properties or investments.

The rise of consumer proposals has been driven by growing familiarity and the support of bankruptcy trustees like David Sklar & Associates, who encourage people dealing with high debt to talk to a professional sooner than later. The earlier you start dealing with your debt, the more options you have, including consumer proposals. Consumer proposals are often appealing because they:

  • Can reduce your total debt with unsecured creditors
  • Involve fixed monthly payments based on your debt, income, and expenses
  • Do not involve giving up any of your assets
  • Stop interest payments and legal actions such as collection calls

Credit Counselling

There’s more to bankruptcy and consumer proposals when it comes to what a bankruptcy trustee can do for you to help with your debt problems. Credit counselling is about piecing your financial life back together after a bankruptcy or a consumer proposal. As part of the insolvency process, you must attend credit counselling. Bankruptcy trustees at David Sklar & Associates recognize that everyone becomes insolvent for different reasons. They tailor credit counselling to match your circumstances, whether it’s about avoiding bankruptcy in the future, rebuilding your credit rating, effectively using credit to your benefit, or identifying and achieving financial goals.

Bankruptcy trustees are there to help you when you’re struggling with debt. They assist with bankruptcies, consumer proposals, and credit counselling. Book an appointment with a bankruptcy trustee for help today.

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