Surplus income
I have been paying surplus income for 15 months but now am told I owe almost $3000. more. I cant’ pay it before October discharge so it will have to go to court(another $600.). I dont understand what this entails and my trustee is ignoring my emails. I am sure this was never explained to me at the onset. Please advise what this will mean?
Posted from: British Columbia
Many trustees are still sorting out the 21 month bankruptcy rules – that’s not an excuse, but not all of the trustees check your income statements everymonth so they can provide you with regular updates. The ones that don’t end up sending people letters advising they haven’t paid enough and then you get stuck scrambling at the last minute to pay them…
Having said that, if you are unable to pay all of your surplus income obligation by the end of the 21 months you do not have to go to Court. You have the right to request mediation from the Office of the Superintendent of Bankruptcy (“OSB”). The OSB has the right to approve a mediated payment plan which will keep you out of Court. You still have to pay the extra surplus, but you won’t get stuck with Court fees or other charges.