September 5, 2017

The Office of the Superintendent of Bankruptcy has released Directive No. 33

The Office of the Superintendent of Bankruptcy, the oversight body charged with licensing and regulating Bankruptcy Trustees has issued a new directive to Trustees regarding their name change.

Over the next year Trustee firms will transition to the new title of Licensed Insolvency Trustee (“LIT”) which be a little easier for consumers to understand than the previously proposed Licensed Trustee in Insolvency & Restructuring (“LTIR”).

Nonetheless, many people will remain a little confused about the term “insolvency”. 

The definition is actually when a person or a company is in a position where the value of their assets is insufficient to cover their liabilities.  In other words if you sold all your stuff you still wouldn’t have enough money to pay all of your outstanding bills.

Notionally an Insolvency Trustee sounds friendlier than a Bankruptcy Trustee.  We hope that turns out to be the case.