Sunday, January 29, 2017

The Role of a Licensed Insolvency Trustee in Mississauga



The role of a Licensed Insolvency Trustee in Mississauga is critical in helping consumers who choose to go through the process of filing for bankruptcy to solve their overwhelming debt problems. Not only do they play a very big part in helping to minimize confusion, but they are present from beginning to end to make sure that every step of the process gets done as quickly and efficiently as possible.

Licensed Insolvency Trustees (LITs) are the only professionals licensed by the Federal Government of Canada to provide debtor information and advice to individuals and businesses with debt problems to help them make informed choices to deal with their financial difficulties. In addition, they are the only ones permitted by law to provide and perform debt restructuring services under the Bankruptcy & insolvency Act (BIA).

Licensed Insolvency Trustees were previously called bankruptcy trustees, or trustees in bankruptcy. The Office of the Superintendent of Bankruptcy Canada has recently changed their designation from bankruptcy trustee to Licensed Insolvency Trustee (LIT) in order to clearly differentiate them from debt consultants who are not licensed by the federal government to provide debt services.

The new designation is important to help eliminate any confusion or doubt among consumers about the legitimacy of LIT’s to provide government programs to eliminate debt. When dealing with a Licensed Insolvency Trustee, consumers are protected in three ways:

The Canadian government regulates the insolvency profession and ensures that Trustees are efficient and effective in complying with the insolvency process.
The Code of Ethics for Trustees establishes a standard for services that they are required to provide to a business or individual who has filed for bankruptcy.
The laws regulating the insolvency process makes sure that both the debtor’s rights and the creditor’s rights are respected.

In Mississauga, a Licensed Insolvency Trustee can provide a wide range of debt management solutions, including consumer proposals and bankruptcies. Insolvency Trustees are the most highly trained and educated debt experts that you can talk to. In most cases, trustees have obtained a university degree and most of them hold an accounting designation. For licensing, all trustees are required to complete a three-year bankruptcy and law course, pass a comprehensive oral examination, and undergo background investigation by the federal and national police force of Canada (the Royal Canadian Mounted Police). Only trustees who are licensed by the Office of the Superintendent of Bankruptcy Canada (OSB) can hold the designation of Licensed Insolvency Trustees.

Their role as debt professionals include the following:

Provide free initial consultation to review your financial situation
Explain to you in detail all your debt relief options, not just bankruptcy
Recommend the best debt management solution that is best to your situation, which may or may not include any type of insolvency solution provided by the Bankruptcy & Insolvency Act
Administer consumer proposals and bankruptcies and manage assets held in trust
Gather all vital information to file the necessary documents and start insolvency proceedings
Notify your creditors, accept and review all claims and administer the rules of the process
Apply for your discharge or completion certificate once you’ve completed all your duties
Ensure that everyone complies with their duties and responsibilities under the law.

If you are deep in debt and are getting harassed by non-stop collection calls and wage garnishments, consulting with a trustee is the most risk-free and inexpensive option you can take towards the right direction. A Licensed Insolvency Trustee in Mississauga can help you determine which debt relief option is best for you and your family so you can be on the road towards a debt free life.

Sunday, January 22, 2017

Does Your Small Business Need Business Bankruptcy Services In Toronto?



In Toronto, business bankruptcy services provide solutions to companies that are undergoing crippling debt and repayment issues and are considering filing for bankruptcy as a final option. These services are offered by a Licensed Bankruptcy Trustee who has extensive knowledge and experience in assisting companies through Division 1 Proposals and Bankruptcies under the Bankruptcy and Insolvency Act of Canada.

Some of the corporate bankruptcy services that a licensed Insolvency Trustee can offer may include:

•          Examining your current debt problems and their causes
•          Finding possible solutions and the implications of each
•          Providing assistance in the preparation of Division I Proposals
•          Filling of Proposals in the Office of the Superintendent of Bankruptcy
•          Representing the insolvent company as intermediary between their creditors
•          Managing company reorganizations
•          Developing and carrying out restructuring activities
•          Business consulting
•          Cash Flow Management
•          Collection Agency consulting
•          Receivership
•          Bankruptcy petition

The process involved in a corporate bankruptcy can differ greatly from one business to another, depending on the legal structure of the business. Under the Bankruptcy and Insolvency Act of Canada, partnerships and sole proprietorships are dealt with under personal bankruptcy, while incorporated companies or corporations may apply for bankruptcy as a business.

When the legal structure of a business is organized as a partnership or sole proprietorship, the setup does not legally separate business and personal assets/liabilities. This means that the business assets and debts are owned by the individuals that operate the business and all assets will be used to settle all debts in the same process as that of personal bankruptcy.

When the business is incorporated then the business is considered a separate entity from each of the individual owners. This means that the assets and debts of the business are legally separate from the personal assets and debts of the business owners. Therefore, a business bankruptcy can be filed without affecting the personal assets of the business owners and only the assets of the business will be sold to pay off creditors.

Business bankruptcies can be very complex. There are many factors to consider, such as the structure of the business and the types of creditors that the business is dealing with. It can also be very costly and can even create more problems than solutions for many small business owners.
It’s important to seek the advice of a professional business bankruptcy trustee to help you understand all the other options available and how each option can potentially affect you and your partners as well as your families. A trustee is licensed by the government of Canada to work with bankrupt companies, their creditors, the Office of the Superintendent of Bankruptcy, and the Courts to ensure an efficient and fair distribution of assets among creditors.

In a corporate bankruptcy process, the government will retain a bankrupt company’s assets and dispose of it quickly by distributing it as fairly as possible among the company’s creditors. The first step that the trustee will take is do a thorough evaluation of the business finances, assets, income and debts. From there, he will present you with all the options that the business has for managing the credit crisis. Once bankruptcy is decided as the best solution, he will then file the necessary documents to start liquidating the company's assets and to negotiate with your creditors. A bankruptcy trustee will be a fair and reliable ally from the beginning through the end until your business is released from its debts.

Business bankruptcy services in Toronto are not only beneficial to companies filing for bankruptcy in order to obtain a fresh start. These services are also useful to help diagnose financial problems early and increase the opportunity to find other options to restructure the debt that can be just as effective to get the business back on track.