proposals and bankruptcy
In 2003 we filed a consumer proposal and paid on it until 2005 at which time we were unable to get our mortgage renewed so we had to declare bankruptcy (we tried to sell the house but couldn’t). we have already gone to court and my discharge was three months or until i paid the trustee surplus of $8000. my spouse is 1 year and has to pay $13000. Why is the proposal monies not taken into consideration when they do the surplus? And why is $500 a month of our sons disability pension put on our income?
Do we get any of our income tax refund to keep or do we have to give it up to the trustee? thanks for your help
I don’t think you are going to like my answer: the amounts you paid into the proposal could have been taken into account (in fact they may have been), but at the end of the day the Registrar has the right to set what ever payment requirements the Registrar feels are justified under the legislation.
You have the right to apply to the Court any time after 12 months have elapsed from the date of the original Order to request that the Order be changed. It is not a complicated process – you need to make the case that you are unable to repay the amount that you have been Ordered to pay. To require you to make the payments will place a hardship on the household. whether or not the Registrar agrees with you, well that’s another matter… I would have a discussion with your trustee before you attempt such a motion.
As to why the $500 a month for your son’s disability is included: if you included your son as a dependent then you have to claim his income, if he has any. Your trustee would have allowed medical costs for your son (if he has any) so the net affect is ususally to your benefit. If you don’t think it was then you should speak to your trustee.