Bankruptcy Lawyer or Bankruptcy Trustee – What’s the Difference?
You probably came across this blog post because you were looking for a solution for your debt problems and Googled “Toronto Bankruptcy Lawyer”. When someone is contemplating filing for personal bankruptcy, the first thing that comes to mind is to find a bankruptcy lawyer. What’s often surprising to discover is that in Canada, a bankruptcy lawyer cannot actually file a bankruptcy for his client – only a bankruptcy trustee can do this. So What is A Bankruptcy Trustee? A trustee in bankruptcy is a person licensed by the Office of the Superintendent of Bankruptcy (OSB) to file and administer bankruptcy and proposal estates. An officer of the Court, the trustee…
Bankruptcy and Gambling Debt
Gambling has become a major problem in our society. I have come across many individuals who became heavily indebted because of compulsive gambling. Filing for personal bankruptcy is an option that naturally comes to mind if someone finds herself with a lot of gambling debt. However, there are a few things one should be made aware of: Filing personal bankruptcy does NOT automatically get rid of your debts. Filing bankruptcy only protects you from legal proceedings by your creditors (the legal term is “stay of proceedings”). To get rid of your debts, you must obtain your discharge from bankruptcy. For a first time bankrupt, a discharge will generally happen automatically…
Choosing a bankruptcy trustee
When choosing to work with a trustee in bankruptcy, there are 2 things you should be aware of: (1) his legal role with respect to your bankruptcy proceedings; and (2) his professional standing with respect to his competence and ethical conduct. These two aspects are discussed below. The Role of the Trustee When choosing which bankruptcy trustee to work with, a debtor will naturally assume that the trustee is working on his behalf. After all, the debtor is paying the trustee’s fees. However, it is important that you understand the legal role of a trustee in bankruptcy. Although he has an obligation to ensure you are treated fairly in the…
Bait & Switch? Surprising Credit Counselling FAQs
The business of debt counselling (a.k.a. credit counselling) and debt consolidation is an extremely competitive one, particularly in Toronto. Unfortunately, there are certain financial professionals who employ questionable methods in marketing their services to get an edge over their competition. There has been a trend of “credit counsellors”, “debt counsellers”, “debt experts” (and I use these terms loosely), referring work to trustees in bankruptcy in return for compensation. From what I have seen in the Toronto area, here is how it usually works: An individual who aspires to be a “debt consultant” or “credit counsellor” will approach a bankruptcy trustee about referring work to his practice in return for a…
Love and money don’t mix
Throughout my career as a bankruptcy trustee, I have seen the following scenario play out time and time again: Girl meets boy and falls in love. He’s not perfect – he could be irresponsible at times – but he makes her laugh and makes her feel good. Besides, she’s confident that she can make him change his ways. Boy wants to buy a new home or car, but has pretty shoddy credit and/or low income. However, that doesn’t matter, his girl loves him so much that she’ll co-sign the loan for him. Eventually, and for one reason or another, the boy stops making his loan payments and takes off. He…
