Normally there are times when individuals get into a position where they are unable to repay their debts. One may therefore file for insolvency with a court of law to bar the creditors from taking their possessions. Upon application for bankruptcy, the courts will also appoint a trustee who is essential in the operations and of a bankruptcy system. Basically the professional will be representing the interests of the creditors during the proceedings. Before hiring a bankruptcy trustee Calgary residents need to understand his role first.
A trustee is required to represent the interest of the creditors. However the interests of the debtor must also be put into consideration in regard to his assets and the relationship with the creditors. Appointed by the courts, the trustees are also required to uphold the dignity of the system as they perform their duties.
The trustees are state officers. In some countries, trustees have their own companies or operate as individuals. They are also allowed to assist in filing for insolvency. They therefore help to fill out the necessary forms and give guidance on the required procedures for filing the same.
Once a professional has been identified and the application for insolvency is accepted, the debtor is accorded an automatic stay by the court. This is a condition where the creditors are barred from making direct contact with the debtor but can only do so through the appointed professional. In this regard the appointee is required to organize meetings between the debtors and creditors.
When appointed the trustee is supposed to make a detailed review of the petition. This is done to seek proof that the application is deserving. It is also done to ascertain that the debtor has no intention of fraud. He is required to give a full account of the assets held by the debtor. These should also give account of the exempt and non-exempt assets. It is the non-exempt assets that are of interest to the courts for they can be sold to service the debts owed.
The non-exempt assets are transferred to the responsibility of the trustee. He is in this regard required to be accountable over all the assets transferred to them and as well any money that might be realized from the said assets. This can be from sale or rent received from the assets. Money realized from the said assets is then distributed to the creditors in accordance to the bankruptcy regulations.
It is the duty of this professional to ensure that there are no transactions or transfers that are made by the debtor on the said assets. In the event where the debtor may have transferred money or assets immediately before or during the proceedings, he can file for a return of the asset or money. This is done in respect to the fact that he is supposed to safeguard the interest of the creditors.
Trustees normally receive compensation based on the cases they undertake. However, they are normally offered a commission on the number of assets they make to recover. This is an incentive given to encourage them recover more assets which the debtor may not have declared. Therefore it is important that when working with a bankruptcy trustee Calgary residents should accord him all the support and information he needs.
A trustee is required to represent the interest of the creditors. However the interests of the debtor must also be put into consideration in regard to his assets and the relationship with the creditors. Appointed by the courts, the trustees are also required to uphold the dignity of the system as they perform their duties.
The trustees are state officers. In some countries, trustees have their own companies or operate as individuals. They are also allowed to assist in filing for insolvency. They therefore help to fill out the necessary forms and give guidance on the required procedures for filing the same.
Once a professional has been identified and the application for insolvency is accepted, the debtor is accorded an automatic stay by the court. This is a condition where the creditors are barred from making direct contact with the debtor but can only do so through the appointed professional. In this regard the appointee is required to organize meetings between the debtors and creditors.
When appointed the trustee is supposed to make a detailed review of the petition. This is done to seek proof that the application is deserving. It is also done to ascertain that the debtor has no intention of fraud. He is required to give a full account of the assets held by the debtor. These should also give account of the exempt and non-exempt assets. It is the non-exempt assets that are of interest to the courts for they can be sold to service the debts owed.
The non-exempt assets are transferred to the responsibility of the trustee. He is in this regard required to be accountable over all the assets transferred to them and as well any money that might be realized from the said assets. This can be from sale or rent received from the assets. Money realized from the said assets is then distributed to the creditors in accordance to the bankruptcy regulations.
It is the duty of this professional to ensure that there are no transactions or transfers that are made by the debtor on the said assets. In the event where the debtor may have transferred money or assets immediately before or during the proceedings, he can file for a return of the asset or money. This is done in respect to the fact that he is supposed to safeguard the interest of the creditors.
Trustees normally receive compensation based on the cases they undertake. However, they are normally offered a commission on the number of assets they make to recover. This is an incentive given to encourage them recover more assets which the debtor may not have declared. Therefore it is important that when working with a bankruptcy trustee Calgary residents should accord him all the support and information he needs.
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