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…
Why we’re in a recession
INTRODUCTION The world finds itself in the midst of the Great Recession that came to full fruition in September 2008 with the collapse of Lehman Brothers. Many have asked this simple question – “how can this have happened?” So why are we in this mess? Before proceeding with my explanation, I modestly offer to the reader my personal economic theorem: “A free market economy is a theoretical construct that only works if, and only if all of the players in the economy are both honest and competent. Both elements must be present for an economy to function properly. As this ideal is impossible to achieve, an economy will habitually require…
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…
