{"id":9822,"date":"2020-10-14T19:00:49","date_gmt":"2020-10-14T23:00:49","guid":{"rendered":"http:\/\/www.irasmithinc.com\/blog\/?p=9822"},"modified":"2021-06-08T16:35:32","modified_gmt":"2021-06-08T20:35:32","slug":"bankruptcy-trustee-lit","status":"publish","type":"post","link":"https:\/\/irasmithinc.com\/blog\/bankruptcy-trustee-lit\/","title":{"rendered":"BANKRUPTCY TRUSTEE:  OUR COMPLETE GUIDE TO WHAT IS A LICENSED INSOLVENCY TRUSTEE"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/EaXEsNSVs5c\" width=\"860\" height=\"484\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p class=\"ng-scope\"><a href=\"https:\/\/www.google.com\/maps\/dir\/43.8304768,-79.5082752\/bankruptcy+trustee+vaughan\/@43.8117097,-79.5412497,13z\/data=!3m1!4b1!4m9!4m8!1m1!4e1!1m5!1m1!1s0x882b2f0ae005a70f:0x7fde3a2e744a0e1c!2m2!1d-79.5340868!2d43.8075903\" target=\"_blank\" rel=\"noopener noreferrer\">The<\/a><a href=\"https:\/\/www.irasmithinc.com\/\">\u00a0<em>Ira Smith Trustee Team<\/em><\/a>\u00a0is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.\u00a0\u00a0We hope that you and your family are safe and healthy.<\/p>\n<h2 id='licensed-insolvency-trustees-licensed-by-the-canadian-government'  id=\"boomdevs_1\"><b><i>Licensed Insolvency Trustees, licensed by the Canadian Government<\/i><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A <\/span><b><i>bankruptcy trustee<\/i><\/b><span style=\"font-weight: 400;\"> (now called a <\/span><i><span style=\"font-weight: 400;\">Licensed Insolvency Trustee<\/span><\/i><span style=\"font-weight: 400;\">) is a person or company licensed to administer receiverships, bankruptcies, and proposals in Canada. We are licensed by the<\/span><a href=\"http:\/\/www.ic.gc.ca\/eic\/site\/bsf-osb.nsf\/eng\/br03459.html\" target=\"_blank\" rel=\"noopener\"> <i><span style=\"font-weight: 400;\">Office of the Superintendent of Bankruptcy Canada (OSB).<\/span><\/i><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The role of the bankruptcy trustee is to help people and companies look at their financial situation and explore the various debt relief options.\u00a0 The Trustee can help with many possible <\/span><i><span style=\"font-weight: 400;\">debt solutions<\/span><\/i><span style=\"font-weight: 400;\">; much more than just <\/span><i><span style=\"font-weight: 400;\">filing bankruptcy<\/span><\/i><span style=\"font-weight: 400;\">.\u00a0 The Trustee looks at various ways the person or business can avoid bankruptcy first.\u00a0 Bankruptcy, which is the <\/span><i><span style=\"font-weight: 400;\">legal process<\/span><\/i><span style=\"font-weight: 400;\"> for debtors to deal with their unsecured creditors, by discharging away their <\/span><i><span style=\"font-weight: 400;\">unsecured debt<\/span><\/i><span style=\"font-weight: 400;\">, including <\/span><i><span style=\"font-weight: 400;\">credit card debt<\/span><\/i><span style=\"font-weight: 400;\"> and <\/span><i><span style=\"font-weight: 400;\">income tax debts<\/span><\/i><span style=\"font-weight: 400;\">, is the last resort.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this Brandon&#8217;s blog, I provide my complete guide on how a <\/span><i><span style=\"font-weight: 400;\">bankruptcy trustee<\/span><\/i><span style=\"font-weight: 400;\"> helps people and companies who are in a precarious <\/span><i><span style=\"font-weight: 400;\">financial situation<\/span><\/i><span style=\"font-weight: 400;\"> because they have too much debt by providing <\/span><i><span style=\"font-weight: 400;\">insolvency services<\/span><\/i><span style=\"font-weight: 400;\"> and helping people and companies through the Canadian<\/span><i><span style=\"font-weight: 400;\"> insolvency process<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id='about-bankruptcy-trustees-what-is-a-licensed-insolvency-trustee'  id=\"boomdevs_2\"><b><i>About Bankruptcy Trustees<\/i><\/b><b>: <\/b><b><i>what is a licensed insolvency trustee<\/i><\/b><b>?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A <\/span><i><span style=\"font-weight: 400;\">Licensed Insolvency Trustee (LIT)<\/span><\/i><span style=\"font-weight: 400;\"> is federally certified by the OSB. A <\/span><i><span style=\"font-weight: 400;\">trustee in bankruptcy<\/span><\/i><span style=\"font-weight: 400;\"> is the old name for a LIT. LITs are the only <\/span><i><span style=\"font-weight: 400;\">debt professionals<\/span><\/i><span style=\"font-weight: 400;\"> who are federally regulated and supervised professional that offers recommendations and solutions to individuals and businesses with financial problems.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">LITs help people make informed choices to manage their debt difficulties. A <\/span><i><span style=\"font-weight: 400;\">bankruptcy trustee <\/span><\/i><span style=\"font-weight: 400;\">is the only expert licensed to carry out <\/span><i><span style=\"font-weight: 400;\">government-regulated insolvency proceedings<\/span><\/i><span style=\"font-weight: 400;\"> such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">privately-appointed or court-appointed receiver or receiver and manager to administer receiverships <\/span><i><span style=\"font-weight: 400;\">Bankruptcy and Insolvency Act <\/span><\/i><span style=\"font-weight: 400;\">Canada (BIA).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">assisting people to restructure through <\/span><i><span style=\"font-weight: 400;\">consumer insolvency<\/span><\/i><span style=\"font-weight: 400;\"> using a <\/span><i><span style=\"font-weight: 400;\">consumer proposal<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">helping people who owe more than $250,000 (not including debts registered against their principal residence) and companies by making a <\/span><i><span style=\"font-weight: 400;\">proposal to creditors<\/span><\/i><span style=\"font-weight: 400;\"> as <\/span><i><span style=\"font-weight: 400;\">alternatives to bankruptcy<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">bankruptcy trustee\/licensed insolvency trustee<\/span><\/i><span style=\"font-weight: 400;\"> in a <\/span><i><span style=\"font-weight: 400;\">bankruptcy administration<\/span><\/i><span style=\"font-weight: 400;\"> when a person or company is filing for bankruptcy.<\/span><\/li>\n<\/ul>\n<h2 id='as-licensed-insolvency-trustees-we-re-here-to-help-how-do-i-become-an-insolvency-trustee'  id=\"boomdevs_3\"><b><i>As licensed insolvency trustees, we&#8217;re here to help:\u00a0 How do I become an insolvency trustee?<\/i><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A person who wishes to acquire an individual licence may complete and file an application with the OSB. The following are required for the issuance of a personal licence under the BIA:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">successfully passed the following, which is administered by the Canadian Association of Insolvency and Restructuring Professionals (CAIRP):<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the Canadian Insolvency and Restructuring Professional (CIRP) Qualification Program (CQP) unless otherwise exempted;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the CIRP National Insolvency Exam; and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the insolvency counselling course;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">paid the required fee;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the applicant shall be solvent;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the applicant must be of good character and reputation; and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">passed the oral board of examination run by the OSB.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You need to pass the educational program run by CAIRP. In order to register, you need to be sponsored by a bankruptcy trustee. That LIT will most certainly be your employer. When you pass the final CQP exam, you are awarded the CIRP designation and then able to apply to sit before the OSB&#8217;s oral board of examiners.<\/span><\/p>\n<figure id=\"attachment_9825\" aria-describedby=\"caption-attachment-9825\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-9825\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-300x169.jpg\" alt=\"bankruptcy trustee\" width=\"300\" height=\"169\" data-wp-pid=\"9825\" data-pin-nopin=\"nopin\" title=\"\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-300x169.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-1024x576.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-768x432.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-1200x675-cropped.jpg 1200w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-150x84.jpg 150w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-9825\" class=\"wp-caption-text\"><em>bankruptcy trustee<\/em><\/figcaption><\/figure>\n<h2 id='trustees-in-bankruptcy-near-you-how-to-find-a-bankruptcy-trustee-in-canada'  id=\"boomdevs_4\"><b><i>Trustees in Bankruptcy near you<\/i><\/b><b>:\u00a0 How to find a <\/b><b><i>bankruptcy trustee<\/i><\/b><b> in Canada<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If you are looking for a <\/span><i><span style=\"font-weight: 400;\">trustee in bankruptcy<\/span><\/i> <i><span style=\"font-weight: 400;\">near you<\/span><\/i><span style=\"font-weight: 400;\">, there are three good ways to find one.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best way to find a <\/span><i><span style=\"font-weight: 400;\">bankruptcy trustee<\/span><\/i><span style=\"font-weight: 400;\"> is a referral from friends or family members. Although they themselves may have never filed for bankruptcy, perhaps they know someone who did. Or, maybe they know a lawyer they trust who can provide them with a name or two that could be passed on to you. A personal reference is the best way to go.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The second way is through the OSB. They maintain a searchable database of all LITs in Canada. You can look for a <\/span><i><span style=\"font-weight: 400;\">bankruptcy trustee<\/span><\/i><span style=\"font-weight: 400;\"> located near you. The directory includes the office locations of all LITs. You can browse either by name, city or province.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The third way is to look for bankruptcy information online. Type into your favourite search engine a phrase like \u201c <\/span><i><span style=\"font-weight: 400;\">bankruptcy trustee<\/span><\/i><span style=\"font-weight: 400;\">\u201d, \u201c<\/span><i><span style=\"font-weight: 400;\">bankruptcy trustee near me<\/span><\/i><span style=\"font-weight: 400;\">\u201d, <\/span><i><span style=\"font-weight: 400;\">bankruptcy trustee Vaughan<\/span><\/i><span style=\"font-weight: 400;\"> \u201d or \u201c <\/span><i><span style=\"font-weight: 400;\">trustee in bankruptcy Toronto<\/span><\/i><span style=\"font-weight: 400;\"> \u201d and start searching websites. Then call the one whose website seems to speak to you. You can make an appointment for a no-cost consultation to get all your questions answered. You may even want to try two or three so that you can compare approaches. Then you can select the bankruptcy trustee that you feel you could work best with.<\/span><\/p>\n<h2 id='the-fee-of-a-bankruptcy-trustee-in-a-summary-administration-bankruptcy-the-bankruptcy-insolvency-act'  id=\"boomdevs_5\"><b>The fee of a <\/b><b><i>bankruptcy trustee<\/i><\/b><b> in a summary administration bankruptcy &#8211; <\/b><b><i>The Bankruptcy &amp; Insolvency Act<\/i><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A personal bankruptcy administration is called a \u201csummary\u201d bankruptcy administration when the realizable assets are estimated at $15,000 or less. This kind of filing for bankruptcy is many times referred to as \u201cno assets, no income\u201d.<\/span><\/p>\n<p><a href=\"https:\/\/laws-lois.justice.gc.ca\/eng\/Regulations\/C.R.C.,_c._368\/page-10.html#h-551564\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Rule 128 of the BIA General Rules<\/span><\/a><span style=\"font-weight: 400;\"> dictates the fee and disbursements of a bankruptcy trustee in a summary administration personal bankruptcy. The fee is fixed and is called a tariff. It is calculated as follows:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c128 (1) The fees of the trustee for services performed in a summary administration are calculated on the total receipts remaining after deducting necessary disbursements relating directly to the realization of the property of the bankrupt, and the payments to secured creditors, according to the following percentages:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(a) 100 percent on the first $975 or less of receipts;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(b) 35 percent on the portion of the receipts exceeding $975 but not exceeding $2,000; and (c) 50 percent on the portion of the receipts exceeding $2,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(2) A trustee in a summary administration may claim, in addition to the amount set out in subsection (1), (a) the costs of counselling referred to in subsection 131(2);<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(b) the fee for filing an assignment referred to in paragraph 132(a);<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(c) the fee payable to the registrar under paragraph 1(a) of Part II of the schedule;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(d) the amount of applicable federal and provincial taxes for goods and services; and (e) a lump sum of $100 in respect of administrative disbursements.\u201d If there are no assets or surplus income that will provide cash in the bankruptcy administration, then the debtor, in order to retain the services of the bankruptcy trustee, needs someone to either guarantee the fee and disbursements or post a cash retainer with the LIT in order to file for bankruptcy.<\/span><\/p>\n<h2 id='the-fees-of-the-bankruptcy-trustee-in-an-ordinary-bankruptcy'  id=\"boomdevs_6\"><b>The fees of the <\/b><b><i>bankruptcy trustee<\/i><\/b><b> in an ordinary bankruptcy<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A bankruptcy is called an \u201cordinary\u201d<\/span><a href=\"http:\/\/www.irasmithinc.com\/faq.html\"> <span style=\"font-weight: 400;\">bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> when the realizable assets are estimated at $15,000 or greater in personal bankruptcy. Every corporate bankruptcy is an ordinary administration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In an ordinary administration, the trustee is entitled to the remuneration voted by the inspectors in the bankruptcy case. The inspectors are representatives of the creditors who were voted in at the First Meeting of Creditors. The fee must also be approved by the court.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The fee will be affected by the complexity of the bankruptcy case, how much work the LIT had to do to preserve and sell the assets and did the LIT obtain verifiable results that can be described as extraordinary. The time spent and the hourly rates of the bankruptcy trustee staff involved are the basis for calculating the fee in an ordinary administration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The disbursements incurred are to be added to the fee and must also be taxed. If the bankruptcy trustee is unsure at the outset if there will be any realizable assets, the LIT will ask a third party to provide either a guarantee or cash retainer.<\/span><\/p>\n<figure id=\"attachment_9825\" aria-describedby=\"caption-attachment-9825\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-9825\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-300x169.jpg\" alt=\"bankruptcy trustee\" width=\"300\" height=\"169\" data-wp-pid=\"9825\" data-pin-nopin=\"nopin\" title=\"\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-300x169.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-1024x576.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-768x432.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-1200x675-cropped.jpg 1200w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-150x84.jpg 150w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-9825\" class=\"wp-caption-text\"><em>bankruptcy trustee<\/em><\/figcaption><\/figure>\n<h2 id='the-consumer-proposal-fee-for-a-bankruptcy-trustee-acting-as-administrator-of-a-consumer-proposal-the-bankruptcy-insolvency-act'  id=\"boomdevs_7\"><b>The consumer proposal fee for a <\/b><b><i>bankruptcy trustee<\/i><\/b><b> acting as administrator of a consumer proposal &#8211; <\/b><b><i>The Bankruptcy &amp; Insolvency Act<\/i><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Rule 129 sets out how to calculate the tariff fee in a consumer proposal. As I stated above, one of the roles a bankruptcy trustee is licensed for is to act as the administrator of a consumer proposal This rule states:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c129 (1) For the purposes of paragraph 66.12(6)(b) of the Act, the fees and expenses of the administrator of a consumer proposal that must be provided for in a consumer proposal are as follows:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(a) $750, payable on filing a copy of the consumer proposal with the official receiver;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(b) $750, payable on the approval or deemed approval of the consumer proposal by the court;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(c) 20 percent of the moneys distributed to creditors under the consumer proposal, payable on the distribution of the moneys;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(d) the costs of counselling referred to in subsection 131(1);<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(e) the fee for filing a consumer proposal referred to in paragraph 132(c);<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(f) the fee payable to the registrar under paragraph 3(b) of Part II of the schedule; and (g) the amount of applicable federal and provincial taxes for goods and services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our regular readers of Brandon&#8217;s Blog will recall that in previous blogs that I wrote, I described what the BIA minimum requirements are for calculating how much a debtor should offer its creditors as a proposal fund in a<\/span><a href=\"http:\/\/www.irasmithinc.com\/bankruptcy_services-personal_consumer-proposal.html\"> <i><span style=\"font-weight: 400;\">consumer proposal<\/span><\/i><\/a><span style=\"font-weight: 400;\">. That calculation has nothing to do with what fee the licensed trustee acting as the administrator may be entitled to.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is why any debtor thinking about filing a consumer proposal in order to avoid bankruptcy need not be concerned with how much they have to pay as a fee. The calculation as to what a reasonable proposal fund will be has zero relation to what the administrator&#8217;s fee will be. In this way, the fee of the bankruptcy trustee acting as administrator is no-cost!<\/span><\/p>\n<h2 id='the-fee-of-the-bankruptcy-trustee-for-the-administration-of-a-division-i-proposal'  id=\"boomdevs_8\"><b>The fee of the <\/b><b><i>bankruptcy trustee<\/i><\/b><b> for the administration of a Division I proposal<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Readers of the Brandon Blog will remember that a <\/span><i><span style=\"font-weight: 400;\">consumer proposal<\/span><\/i><span style=\"font-weight: 400;\"> is available for any individual who has $250,000 of debt or less, not including any debts secured against their personal residence. A Part III <\/span><i><span style=\"font-weight: 400;\">Divison I<\/span><\/i><span style=\"font-weight: 400;\"> of the BIA proposal is available to all companies and to any person whose debts are too large to do a consumer proposal. Both are alternatives to bankruptcy Under either administration, a proposal is a debt relief plan sanctioned by the BIA. It is the only debt settlement plan authorized by the Government of Canada. Above I described how the fee and disbursements of a bankruptcy trustee in an ordinary bankruptcy administration must be approved by the inspectors and the court.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The same is true for the fee of the bankruptcy trustee acting as the licensed trustee in a Divison I proposal. The calculation of the fee will be very similar to an ordinary bankruptcy administration also. The only difference will be as required by the difference between a proposal and bankruptcy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A proposal is a great <\/span><i><span style=\"font-weight: 400;\">alternative to bankruptcy<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 id='only-a-bankruptcy-trustee-can-act-as-a-receiver'  id=\"boomdevs_9\"><b>Only a <\/b><b><i>bankruptcy trustee<\/i><\/b><b> can act as a receiver<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Section 243(4) of the BIA states that only a bankruptcy trustee can be appointed as a receiver. It does not matter whether the receiver will be privately or court-appointed. The calculation of the receiver&#8217;s fee is based on the hours worked and the hourly rate charged by the respected staff working on the file.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a private appointment, the fee must be approved by the appointing secured creditor. In a court appointment, the fee must be approved by the court.<\/span><\/p>\n<figure id=\"attachment_9825\" aria-describedby=\"caption-attachment-9825\" style=\"width: 300px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-9825\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-300x169.jpg\" alt=\"bankruptcy trustee\" width=\"300\" height=\"169\" data-wp-pid=\"9825\" data-pin-nopin=\"nopin\" title=\"\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-300x169.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-1024x576.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-768x432.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-1200x675-cropped.jpg 1200w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-150x84.jpg 150w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-9825\" class=\"wp-caption-text\"><em>bankruptcy trustee<\/em><\/figcaption><\/figure>\n<h2 id='bankruptcy-trustee-summary'  id=\"boomdevs_10\"><b><i>Bankruptcy trustee<\/i><\/b><b> summary<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">I hope you have enjoyed this bankruptcy trustee Brandon&#8217;s Blog. Hopefully, you have better insight now into the many roles played by a LIT. As part of any bankruptcy or proposal administration, there are two mandatory credit counselling sessions also. So, the LIT also acts as a credit counsellor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do you or your company have too much debt? Are you or your company in need of financial restructuring? The financial restructuring process is complex. The<\/span><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"> <span style=\"font-weight: 400;\">Ira Smith Team<\/span><\/a><span style=\"font-weight: 400;\"> understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You are worried because you are facing significant financial challenges. It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The<\/span><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"> <span style=\"font-weight: 400;\">Ira Smith Team<\/span><\/a><span style=\"font-weight: 400;\"> uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we take the load off of your shoulders and devise a debt settlement plan, we know that we can help you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We know that people facing financial problems need a realistic lifeline. There is no \u201cone solution fits all\u201d approach with the<\/span><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"> <span style=\"font-weight: 400;\">Ira Smith Team<\/span><\/a><span style=\"font-weight: 400;\"> That is why we can develop a restructuring process as unique as the financial problems and pain you are facing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If any of this sounds familiar to you and you are serious about finding a solution,<\/span><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"> <span style=\"font-weight: 400;\">contact the Ira Smith Trustee &amp; Receiver Inc. team today.<\/span><\/a><\/p>\n<p><a href=\"http:\/\/www.irasmithinc.com\/contact_us.html\"><span style=\"font-weight: 400;\">Call us now for a free consultation.<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting. We hope that you and your family are safe and healthy.<\/span><\/p>\n<figure id=\"attachment_9825\" aria-describedby=\"caption-attachment-9825\" style=\"width: 1280px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.google.com\/maps\/dir\/\/bankruptcy+trustee+vaughan\/@43.810888,-79.5406994,15z\/data=!4m8!4m7!1m0!1m5!1m1!1s0x882b2f0ae005a70f:0x7fde3a2e744a0e1c!2m2!1d-79.5340868!2d43.8075903\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9825\" src=\"http:\/\/www.irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee.jpg\" alt=\"bankruptcy trustee\" width=\"1280\" height=\"720\" data-wp-pid=\"9825\" title=\"\" srcset=\"https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee.jpg 1280w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-300x169.jpg 300w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-1024x576.jpg 1024w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-768x432.jpg 768w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-1200x675-cropped.jpg 1200w, https:\/\/irasmithinc.com\/blog\/wp-content\/uploads\/2020\/10\/bankruptcy-trustee-150x84.jpg 150w\" sizes=\"auto, (max-width: 1280px) 100vw, 1280px\" \/><\/a><figcaption id=\"caption-attachment-9825\" class=\"wp-caption-text\"><em>bankruptcy trustee<\/em><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0Ira Smith Trustee Team\u00a0is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.\u00a0\u00a0We hope that you and your family are safe and healthy. Licensed Insolvency Trustees, licensed by the Canadian Government A bankruptcy trustee (now called a Licensed Insolvency Trustee) is a person or company [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[5,562,34,3199,270,6,4460,4475,863,990,1136,465,4473,4474,1163,163,89,3259,4432],"class_list":["post-9822","post","type-post","status-publish","format-standard","hentry","category-brandon-blog-post","tag-bankruptcy","tag-bankruptcy-and-insolvency-act-bia","tag-bankruptcy-trustee","tag-bankruptcy-trustee-near-me","tag-bankruptcy-trustee-toronto","tag-consumer-proposal","tag-division-i-part-iii-proposal","tag-how-do-i-become-an-insolvency-trustee","tag-ira-smith-trustee","tag-licensed-insolvency-trustee","tag-lit","tag-office-of-the-superintendent-of-bankruptcy","tag-ordinary-administration","tag-ordinary-bankruptcy","tag-osb","tag-receiver","tag-receivership","tag-summary-administration","tag-what-is-a-licensed-insolvency-trustee"],"_links":{"self":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/9822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/comments?post=9822"}],"version-history":[{"count":5,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/9822\/revisions"}],"predecessor-version":[{"id":10841,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/posts\/9822\/revisions\/10841"}],"wp:attachment":[{"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/media?parent=9822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/categories?post=9822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/irasmithinc.com\/blog\/wp-json\/wp\/v2\/tags?post=9822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}