A bankruptcy trustee is the individual who is responsible for distrusting both the property and assets of an individual who has filed for bankruptcy. The distribution of the assets is generally divided among people, corporations or any other entity to which the individual is indebted to. According to the court system, a bankruptcy trustee in Edmonton has to distribute all assets in accordance with the law. Failing to grant the trustee permission to do so can prevent an individual from filing for bankruptcy. It is important that the trustee be granted permission in order to ensure that all proceedings strictly adhere to the distribution scheme, as outlined by the court system. After an individual's bankruptcy is certified, they will be assigned a licensed trustee. |
Evaluation of Assets and Debts
After the bankruptcy trustee in Edmonton has been granted the legal right to work with an individual's bankruptcy case, there are several things that need to be done before their assets are distributed. The first thing that needs to be done is an evaluation of assets and financial status. This step is especially important because every person that files for bankruptcy is not necessarily a candidate for bankruptcy. During this step the trustee will research the individual's financial information, debts and property ownership, in order to determine if bankruptcy is the right solution for their situation. Should the bankruptcy trustee find that this is not the right solution, the bankruptcy will be denied by the courts. However, should they agree that it is the right solution, the proceedings will continue to progress forward.
Transfer of Assets
Next, the individual who is filing for bankruptcy has to transfer both their property and assets over to the bankruptcy trustee in Edmonton, in order to give the trustee complete and total control. The transfer of assets is important not just for the property and assets owned by the individual who is filing for bankruptcy, but any property or assets that are owned by another person who has a stake in their property must also give up their control as well. This step is completed so that the bankruptcy trustee can freely settle all debts owed by the individual filing for bankruptcy.
Credit and Debt Counseling
After the individual has granted full permission to the bankruptcy trustee, it is now the responsibility of the bankruptcy trustee to assist the individual filing for bankruptcy with enrolling in a debt counseling or credit counseling program. The purpose of these counseling programs is to ensure that the individual is equipped with proper money and credit management tools going forward. Without this information the individual will be susceptible to the same type of scenario happening again. By ensuring that they are equipped with proper money management tools it is the hope that they will have a better financial future.
Disbursement of Assets
Finally, after all these steps have been completed, the bankruptcy trustee in Edmonton is now responsible for disbursing the individual's assets. By this point any assets that are not transferable according to the law have already been classified exempt, so the bankruptcy trustee has complete and free-rein to settle any and all debts of the individual filing for bankruptcy. Based on the assessment of the individual's assets and debtors, the trustee has devised a plan that clearly outlines how much and when each debt will be paid. During the entire process, it is the responsibility of the trustee to protect the integrity of the bank system. This is done by ensuring that the individual filing for bankruptcy is protected as well as any debtors or creditors involved in the process – it is important that every person is protected during the bankruptcy proceedings.
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