When most people hear the word bankruptcy they think of individuals who have financial problems. Bankruptcies and consumer proposals in Ontario are both legal avenues that are afforded to individuals and businesses who qualify for financial relief.
Specifically with respect to industries like the legal, tax, accounting and financial industries; it pays for businesses in these industries to have a close relationship with a trustee in bankruptcy.
Many trustees in bankruptcy in Ontario are also chartered accountants. Trustees in bankruptcy are appointed by the Superintendent of Bankruptcy and have an obligation to protect the interests of both a creditor and debtor in bankruptcy. They are not on one side or the other.
A business owner, who has been included in a bankruptcy filed by their client, may think about a bankruptcy trustee and remember them as somebody who facilitated a debtor not paying them. Some may think why would a relationship with a trustee help me?
1. If you are working in an industry where you do not receive payment for your services up front, but rather when they are rendered, a bankruptcy trustee can help you structure the process to best protect you from your customers. They may be able to tell you how to spot a person who’s heading for bankruptcy, enabling you to better protect your financial interests.
2. A trustee in bankruptcy enhances your professional services because if you have clients who are considering bankruptcy, you can knowledgeably set them up with the right professionals to facilitate the process. I routinely introduce trustees in bankruptcy to law firms, accounting firms and other clients alike because these relationships are crucial. If you are in a business where clients are often going bankrupt, trustees like A. Farber and Partners have bankruptcy trustees in Ontario that will even attend your office.
3. In the event you are included in a bankruptcy, a relationship with a trustee in bankruptcy gives you someone to call (independent of the trustee who is administering your clients bankruptcy) to seek an independent opinion and learn what options you may have to protect yourself.
As you can see by my points, building a strong relationship with a bankruptcy trustee in Ontario doesn’t cost you anything and you have everything to gain. For more information visit www.assureassess.com
Assure Assess Corp. is the leading provider of services to law firms, accounting firms, trustees, financial institutions, government and some private enterprise.Assure Assess has a presence both in Canada and the US and has three primary divisions: Communications, Financial Services and Technology Solutions.