Written by Vanessa Santilli on March 27 on CreditCards.ca

Filing for bankruptcy is a hard path, but a good bankruptcy trustee can help. The trustee will guide you through the process, both technically and emotionally. But not all trustees are created equal. Here are some tips on how to choose the trustee that’s right for you.

Why do you need a trustee?
“In Canada, the legislation is that only a licensed trustee in bankruptcy can file a bankruptcy,” explains David Bottom, a trustee in bankruptcy based in Westminster, B.C.

Unlike the U.S., you do not need a bankruptcy lawyer to declare bankruptcy. In Canada, a trustee in bankruptcy is able to represent you in court.

“While there are insolvency lawyers, they are there to act in a different capacity for either the creditor or debtor’s interests,” says Bottom. “Trustees are neutral in their role, whereas lawyers act in the best interests of their clients.”

Do some thorough research, and use all available resources
Take the time to interview more than one trustee.

“Declaring bankruptcy is an emotional experience and you do not want to make a rushed decision,” says Michael Krieger, trustee in bankruptcy for BDO Canada Limited.

When searching for the right fit, a recommendation from a trusted friend is an ideal way to find a good trustee. But if your network can’t offer you a referral, you can check a couple of different listing websites. One is the Canadian Association for Insolvency and Restructuring Professionals (CAIRP). CAIRP is an industry association that includes trustees as well as other bankruptcy professionals.

Also visit the Trustee Registry at the Office of the Superintendent of bankruptcy’s website. It lets you see whether a trustee has been subject to any disciplinary action by the superintendent of bankruptcy, says Mary Plahouras, a senior estate manager with accounting firm MNP LLP, who is in the final stage of becoming a trustee.

“The superintendent has the responsibility of not only licensing the trustee, but also disciplining them for any professional misconduct,” says Plahouras.

Choose a trustee who makes you comfortable
Your initial conversations with a potential trustee can be telling. You want to feel comfortable speaking openly with the trustee about your financial problems.

“The goal of the trustee is to apply the applicable statute and remain independent,” Bottom says. “However, they are also there to assist you in rehabilitation of rebuilding your financial success and allow you to have a fresh start.”

The trustee should be willing to spend time with you so you clearly understand what needs to be done in order to come out ahead. They should be able to look beyond the numbers and take into account your emotional state.

The following signs, however, are red flags:

• The trustee charges you for the first meeting. According to Plahouras, the initial meeting should be free.
• The trustee does not explain all of your options — along with the pros and cons of each — to settle your debt.
• You have a bad gut feeling. “Keep on looking until you get a good feeling about the individual,” Krieger says. “After all, it is your money.”
• The trustee is judgmental about your situation.

If you notice any of the above signs, seek help elsewhere.