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POSITION PAPER 2001
Par-O-Law Canada Inc.
The Executive Document Series

Background

For some 85 collective years, the principals at Par-O-Law Canada Inc. have pioneered financial default management™ techniques. The success of Par-O-Law Canada Inc. and its principals have been championed by its clients, its adversaries, its delivery partners, and believe it or not, some Bankruptcy Trustees.

Born From Inequity

The Company was born from an inequity in the process by which bankruptcies and financial default circumstances are handled. The natural evolution of the legislation concerned led to the formation of a system in which there were four principal players:

• The debtor(s), who was in default.
• The Creditor(s), who were owed money.
• The Trustee, who made a fee for representing the interests of the Creditor(s),
• The Lawyer, who made a fee for either representing the interests of Creditor(s), or occasionally the debtor(s).

The inequity arises where the debtor is unaware of entitlement to legal representation, or due to certain circumstances cannot afford representation, the latter being the most prevalent case by far.

Unbiased Representation of the Debtor

Par-O-Law Canada, a corporate body of Professional Paralegals, provides the insolvent person/company with financial guidance prior to the declaration of the insolvent event, and full representation before the Trustee, the Creditor(s), and/or The Master [Registrar] of The Superior Court of Justice in Bankruptcy (Bankruptcy Court) upon full declaration of the insolvent or bankrupt event.

Trustees Forbidden From Giving Advice to Debtor

It is important to keep in mind, that the law forbids trustees in bankruptcy from giving advice as to how to protect the assets of debtors faced with insolvency. Trustees can only give advice about the process, which really boils down to no advice at all.

The unsuspecting insolvent person seeks out a trustee through Yellow Pages advertisements or some other source and firmly believes the trustee to be working for them. The true role of the trustee is carefully masked behind friendly, and very misleading advertising.

Trustees Provides No Real Service to Debtor

In order for trustees to try and distance themselves from this blatant conflict of interest they instruct the debtor(s) to pay their money into an "estate". The money in the "estate" then belongs to the interested creditor(s). The trustee receives their fee from the "estate". The trustee is paid in priority to the creditors.

In other words; Trustees must represent the person(s) who truly pay their fee ~ the Creditors.

In essence, a Bankruptcy Trustee provides no real service to a debtor.

Par-O-Law Releases the Trustee From the Conflict

Par-O-Law Canada Inc. has a mandate to fill this void by exclusive representation of debtors. Clients are professionally and fairly represented; thereby releasing the Trustee from the conflict of interest they perpetually find themselves under.

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