How To Qualify For Bankruptcy Trustee In Canada
You may have landed here in search of an answer about steps of qualifying for bankruptcy trustee Montreal, you have found the right article.
This good read will get you all the information to qualify for Bankruptcy Trustee along with their roles and responsibilities.
But before we begin, lets understand the scope of becoming a bankruptcy trustee Montreal
Bankruptcy Trustee Requirement
Under bankruptcy law, when someone files for bankruptcy, a bankruptcy estate is created. This bankruptcy estate is composed of the debtor’s property which is its own distinct legal entity that is separated from the bankruptcy debtor.
Of course, the bankruptcy estate is not a person, that’s where a bankruptcy trustee is needed to step in.
The main role a bankruptcy trustee plays is to process the case forward under the laws.
Hence, a trustee performs various duties required by law.
Considering the same, we can say that a trustee has a major and crucial role under this process and so people who look forward to appointing a trustee would deserve the trustee with right qualification and experience.
Having said that, let’s know about how to qualify for bankruptcy trustee in Canada.
How To Become a Bankruptcy trustee
Becoming a Bankruptcy Trustee is a matter of big responsibility. And so, right procedures, qualification is core of the process.
Moreover, the Superintendent of bankruptcy has the authority, under the Bankruptcy and Insolvency Act (BIA), to grant licences to Insolvency Trustees.
However, before granting a licence, the Superintendent ensures that candidates meet certain qualifications requirements, mentioned in Directive No.13R6, Trustee Licensing.
These requirements are:
- Candidate should be of good character and reputation
- Need to be solvent with clear record of last 5 years
- Should successfully completed the Chartered Insolvency and Restructuring Professional (CIRP) Qualification Program (CQP) which is taken care by The Canadian Association of Insolvency and Restructuring Professionals (CAIRP
- Should have cleared The CIRP National Insolvency Exam and the Insolvency Counsellor’s Qualification Course or the Practical Course on Insolvency Counselling.
- Candidates need to pass an Oral Board of Examination, carried out by the Office of the Superintendent of Bankruptcy. Furthermore, the oral examination invitation is received only after completing CIRP.
- Should be qualified from Canadian university or 5 years of experience in bankruptcy
So, do check the. background before applying. And once, the application is all set for further process, its time for Trustee Licence.
Let’s know more!
Online Application for Trustee Licence
When you successfully complete the Competency-Based National Insolvency Examination, you will receive an email invitation to apply for a licence.
In this email you’ll get a link to the OLAA with instructions on how to complete the application for trustee licence electronically.
After completing all the prerequisites, you can now apply for a trustee licence using the new OSB Licence Administration Application (OLAA).
Congratulations! After getting a licence now you became a trustee in bankruptcy.
So, lets prepare!
And now, to understand the role of trustee, one should understand the root cause of bankruptcy.
Let find out the main cause of personal Bankruptcy!
The Top 5 Causes Of Personal Bankruptcy In Canada
Here are some reason for bankruptcy in Canada:
1. Unexpected disaster
Sometimes unexpected disasters like house fires can lead to bankruptcy. If you don’t have enough savings then such a disaster can be a cause of bankruptcy.
2. Job Loss
Losing your only source of income makes it difficult for you to overcome your payments. This also gets you in a situation of debt and bankruptcy in Canada.
3. Illness or Medical emergency
Here’s another reason, a medical emergency! While government health care is there in Canada, a major illness, or other health related problems can affect both your income and your living expenses. Thus lead to bankruptcy.
4. Financial Mismanagement
Overspending and poor financial management is another main cause of bankruptcy in Canada. You need to spend wisely. Poor financial or money management can lead to bankruptcy.
At The Glance
There can be a number of reasons that result in debt. And so bankruptcy trustee Montreal can always be a part of team to solve your doubts about bankruptcy to determine the next steps.