According to the Merriam-Webster Dictionary, a Trustee is defined as “a natural or legal person to whom property is legally committed to be administered for the benefit of a beneficiary”. A Licensed Insolvency Trustee is licenced by the federal government to resolve a person’s financial difficulty and administer their assets for the benefit of their creditors. The position of a Licensed Insolvency Trustee is that of an officer of the court.
As an officer of the court the Trustee must treat all parties impartially and takes his direction from the legislation and the Court. A Licensed Insolvency Trustee will also be licenced as administrators of Consumer Proposal. Most Licensed Insolvency Trustees have a financial background such as accountant or a legal background.
All Licensed Insolvency Trustees must pass an examination process dealing with various federal and provincial legislation. Upon completing the written examination, the Licensed Insolvency Trustee must appear before a panel of their peers who will determine if the candidate has the qualities required to assist debtor with their financial crisis. No other profession or class of debt counsellors possess this same qualification process.
It is the Licensed Insolvency Trustee who is to meet with the individuals and provide each debtor with an assessment of their financial situation and to fully provide all options available to the debtor. Such options include Consolidation Loan, Accredited Credit Counselling providers, Consumer Proposal and finally the last option of Bankruptcy.