Who Does a Bankruptcy Trustee in Ontario Work For?

Question: AS A TRUSTEE , DO YOU WORK FOR THE CLIENT OR THE CREDITORS ? WHOSE BEST INTERESTS DO YOU PROTECT ?

Answer: This is an excellent question. If you file bankruptcy in Ontario, your bankruptcy file is administered by a licensed bankruptcy trustee. Technically, although you as the debtor choose your trustee, the trustee is appointed by the court to administer your estate. The trustee is therefore a court appointed official, working for the court.

In other words the trustee does not work for you, and the trustee does not work for the creditors. The trustee is appointed by the court (sort of like a judge) to make sure that all of the rules are followed. The trustee will explain the rules to you before you file bankruptcy. The trustee will also make sure that the creditors follow all the rules (such as preventing them from garnisheeing your wages after the bankruptcy starts).

Even though the trustee is not working for you, they are there to help make the process go smoothly, and therefore it is important to select a trustee that you feel comfortable with, and that explains your options in detail before you decide to file bankruptcy in Ontario.

Labels: bankruptcy Ontario, bankruptcy trustee