Are you eager to know what does bankruptcy trustee do? How do they investigate and decide the conclusion in Montreal, Canada? Well, here we tell you certain parameters which are checked and investigated by the licensed bankruptcy agent.

Let’s see what does the bankruptcy trustee major responsibilities are.

Bankruptcy is legal which is handled by licensed bankruptcy trustees only under Bankruptcy and Insolvency Act. These trustees are well acquainted with rules and regulations as they have gone through a lot of examinations to gain the license.

And the licenses are acquired from the Office of the Superintendent of Bankruptcy. It is the main department that provides the license to the bankruptcy trustees. Here we will have information of bankruptcy trustee Montreal Canada.

Considering which, let's know what does Bankruptcy trustee job profile includes!

Bankruptcy Trustee Key Roles and Responsibility

  • In the bankruptcy process, it is the role of the trustee to do all start to end jobs. Filing for bankruptcy, doing documentation and counselling are a few roles and responsibilities of the bankruptcy trustee. Doing asset review and negotiation is also the basic role of the trustee
  • The bankruptcy trustee can also take actions related to the fraud. They need to investigate the matter, collect certain proof which will make the case stronger. The main job of the bankruptcy trustee is to safeguard the interest of the creditors to fair dealing
  • The bankruptcy case began with filing the case in court and submitting the paper related to the case. The trustee will cross-verify all the papers and will check for the additional documents to compare the assets and accordingly settlement or to negotiate
  • Debtors need to attend a minimum of one meeting conducted by the creditor’s trustee to cross-verify all the documentation, including available assert, income, loan etc. to make the paperwork accurate
With all the responsibilities, here comes the detailed insight of their investigation potion!

Bankruptcy Trustee Investigate the Suspected Fraud Under Rule 2004 Examinations

A trustee needs to investigate and seek proof to file the fraud in court. Once they have enough proof, the case can be filed in court. Rule 2004 is for those trustees who suspect the fraud but they don’t have any proof to confirm it.

Rule 2004 helps in conducting the investigation against the fraud. In this rule, a licensed bankruptcy trustee has the power to investigate the scenario and present it in front of the court. Under Act 2004, a trustee can investigate the following scenarios
  • A fraud that will disturb the bankruptcy administration
  • A fraud that can impact the debtor right to discharge
  • Fraud related to the financial conditions (property, assets, liabilities) of the debtors

Filing fraud in court

On having all the relevant proof regarding the fraud, a licensed bankruptcy trustee has the power to file the case in court against the party. The purpose to file the case in court is to gain compensation against the fraud for the creditors. Below are the few frauds:
  • To have the information regarding an undisclosed or hidden property
  • To cancel the discharge of bankruptcy for the debtors who are trying or already have transferred the property or asset to someone without informing it to the licensed bankruptcy trustee
  • Any asset which has forcefully been taken
  • Seen any fraud transfer of property or any assets

Bankruptcy Frauds

There are a few frauds that can occur during the bankruptcy process. A licensed bankruptcy trustee is the one who can investigate and present the fraud if found in the court for further processing.
  • Filing wrong or fraud petition
  • Giving illegal money is termed bribery
  • Providing false statement
  • Doing false or wrong claim
  • Hiding or not disclosing the property or assets
In the Bankruptcy process, a licensed bankruptcy agent owns the process. The trustee will take care of the entire bankruptcy process and will also abide by all the roles and responsibilities. During the process, anywhere if the trustee deducts any fraud then his prime duty is to investigate and highlight the same in the court.

At The End

Now, you all know that during a bankruptcy process the main role of a licensed bankruptcy trustee is not only to investigate the fraud arising in the process but also to investigate and highlight it to the court with the rest of his basic duties.