Bankruptcy lawyer or bankruptcy administrator? Who do I need in Canada?

Bankruptcy lawyer or bankruptcy administrator? Who do I need in Canada?

Bankruptcy lawyers in Canada are specialized lawyers in insolvency law. They are used almost exclusively in corporate files. In our legal system, the job of a lawyer is to be your lawyer and to debate your position and your opposition. This controversial method has served the legal profession very well: both sides of the argument are presented and the Court then decides on the appropriate procedure.

The controversial approach is not appropriate for most personal bankruptcy situations. When you file a bankruptcy application, you transfer your assets to your manager in exchange for deleting your unsecured debts. In 99.9% of personal insolvency cases, there is nothing to discuss. The trustee in bankruptcy will explain the rules and procedures of bankruptcy law, then act as an arbitrator to enforce these rules. As you can see, this is very different from the adversarial role of a lawyer.

In 0.1% of cases with contentious issues, bankruptcy lawyers can be used or your trustee, as clerk, can ask the court to make a decision.

Do you need a bankruptcy lawyer? This is very unlikely to happen. The manager you choose to recruit should advise you before deciding to go bankrupt if you think you have a problem that may require the advice of a personal solicitor.

Bankruptcy is a legal procedure - but a good administrator is familiar with the Bankruptcy Act because of its strict education and accreditation program.

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