Meeting with a bankruptcy trustee

A first visit to a trustee

What should I expect? What are the costs?

That’s a good question because people who are facing financial problems usually don’t have a lot of money to pay for professional fees. So, what about it?

First of all, the initial consultation(s) is always free of charge. Afterwards, if the client chooses a consumer proposal, the law stipulates that the fees for it are fully paid by the creditors from the amounts promised to them in the proposal. If the client opts for bankruptcy, there may be mandatory monthly contributions if the client has a good income (as determined according to government standards). If the client has lower income, the trustee and the client will agree on an acceptable and realistic amount, taking into account their family obligations. The goal is to no longer feel overwhelmed.

Q: What happens during the first meeting?

A: The first meeting can be summarized in four steps, and it is confidential:

  1. Identify the causes of financial difficulties to better address them.
  2. Analyze the client’s financial situation to determine the available solutions.
  3. Answer all questions and concerns.
  4. Provide advice and support the client in their actions, if necessary.

The majority of first encounters usually last for about an hour. Sometimes a period of reflection is needed, and that is completely normal.

Q: What are the 4 main solutions?
  1. Budgeting: With assistance, it is sometimes possible to reduce certain expenses and create a solid debt repayment plan.
  2. Debt consolidation: When our credit is good and we have the means to repay a loan obtained to consolidate all debts, consolidation can be a useful tool.
  3. Consumer proposal: When consolidation is not possible, a proposal allows for the complete elimination of interest and offers creditors monthly payments often much lower than the total amount owed.
  4. Bankruptcy: If none of these options are viable, bankruptcy can be a simple and relatively inexpensive alternative to get back on your feet quickly.

The most important advice we can offer? Being well-informed will allow you to make a better decision. Don’t be afraid to seek advice.