A Licensed Insolvency Trustee (IIT) is a qualified individual approved by the Superintendent of Bankruptcy Canada to administer bankruptcies and proposals made in connection with insolvent businesses and assets held in Insolvency Pool. The term Insolvency Pool is using to describe the group of insolvent businesses in which the Insolvency Practitioner serves as trustee or adviser. Insolvency Pool companies have undertaken to comply with the requirements of Insolvency Act. The objective of Insolvency Pool is to provide advice and assistance to business owners that are considering going into bankruptcy and also to those who may already be in such situation. Insolvency Pool companies have also been authorized by the Office of the Superintendent of Bankruptcy to carry on certain activities connected with insolvency. View here for more info. about this service. Under the Insolvency Practitioner Act, a licensed insolvency trustee is required to carry on the following duties: supervise and report to the Insolvency Practitioner, to assist and advise the Insolvency Practitioner, and to make all necessary arrangements for the preparation of the final consumer proposal. Under the Act, a licensed insolvency trustee may also submit to the Insolvency Practitioner, for approval, an application for an allowance under the final consumer proposal. In cases where the Insolvency Practitioner has not approved an allowance, then the applicant can submit a counter-application. The applicant is required to comply with all the conditions imposed by the Insolvency Practitioner. Under the Insolvency Code, the duties of a licensed insolvency trustee are defined and limited as necessary under the circumstances described in sections 7 and 8 of the Insolvency Code. In general terms, the duty of a bankruptcy trustee is to protect the assets of the Insolvency Practitioner. The applicant's rights are protected by law against any action taken against the Insolvency Practitioner. It is, however, possible for the insolvent individual to recover his debts from an individual who has been appointed to collect such debts, such as a bankruptcy trustee. Read more about this service on this page. As well as protecting the assets of the Insolvency Practitioner, the licensed insolvency trustee may also protect the assets of the Insolvency Practitioner's creditors. In order to achieve this result, the creditors of the Insolvency Practitioner must refrain from taking measures that may adversely affect the Insolvency Practitioner or the Insolvency Profession. For example, it may be in the Insolvency Practitioner's best interests to avoid certain individuals or companies that have an interest in the Insolvency Panel's discharge of its review. Conversely, the creditors of the Insolvency Panel must ensure that the review of the Insolvency Panel is performed in the most expedient manner possible. When negotiating with the creditors of the Insolvency Panel, the licensed insolvency trustee makes it a point to always stay at arm's length. While each situation is unique and particular to the Insolvency Panel, the licensed insolvency trustee is required by law to conduct negotiations only with those parties that are involved in the process. Unless the Insolvency Panel is acting in bad faith, it is not within the trustee's lawful mandate to enter into negotiations with creditors directly. Such direct negotiations must be between the Insolvency Practitioner and the creditors of record, in accordance with the provisions of the Insolvency Act. Further, unless the Insolvency Practitioner is willing to enter into a court agreement with the Insolvency Panel, the licensed insolvency trustee is required not to make wage garnishments. Wage garnishments remain an option that the Insolvency Panel must consider carefully and consult with counsel before proceeding. To understand more about this subject, please read a related post here: https://en.wikipedia.org/wiki/Debt.
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