Harassing creditors
I have claimed personal bankruptcy in February of 2006. I was assesed to pay 1625.00 per month then 8 months later I was reassed and informed that I would have to pay $1775.00 plus I would have to catch up for that amount since the start of bandruptcy. I was told that I would be in bankruptcy for a period of 21 months. This is a first time bankruptcy but because of excess surplus income I would be 21 months. Now I am getting calls from creditors that were listed in the bankruptcy requesting payment of my depts. I have informed them of the bankruptcy and the name of the trustee. This company advised me they have received correspondence from the trustee saying they have to settle with me for payment. This creditor has now placed me in collections and I am now getting correspondence and calls from the collection agency demanding payment. I have informed them that I am bankrupt and have no extra money to pay. Besides the bankruptcy I have to pay $3000.00 to one of the secured creditors and an amount of $800.00 to the trustee for a secured item. This does not leave me any money at the end of the day. I accept this and am trying to pay of the bankruptcy however I fail to see what I have accomplished since with the amount I am paying I am almost paying off all my dept plus am still being harassed and place in collections. My question is is this permitted and is there anything that I can do about the collections? I have also been informed that I will have to go to court at my discharge has been objected to. Any help or advise would be appreciated. I was also wondering if I should get a lawyer as there doesn’t seem to be anyone looking out for my interests. Howeve I am not sure how I could afford a lawyer.
Thats in advance
Let’s take this one step at a time:
SURPLUS INCOME and 21 month bankruptcy: Your trustee is required to assess surplus income payments based on your household income and the number of people residing in the household. Depending on the amount of your monthly payments, your trustee is required to recommend an extensions of of to 12 extra months to your bankruptcy – that’s where the 21 months comes from. Based on the facts you have presented, I would have had you file a proposal to your creditors instead of bankruptcy. having filed bankruptcy, the 21 months seems appropriate based on your surplus payments.
CREDITOR CALLS: the only creditors you should be making payments to are those that were secured or that have debts that survive your bankruptcy. It is an offence to make payment arrangements with your unsecured creditors. I would contact your trustee to discuss this issue with them.
There are creditors, (finance companies for the most part) that register liens against your personal possessions and furniture. Technically, they are secured and therefore many trustees (ourselves included) will send them a release of interest letter when they prove they have registered a lien. If you are dealing with one of these creditors you have two choices, either surrender the items listed as security or agree to pay them the fair value of these items. Sorry, but theses creditors have rights and you can’t simply ignore them.
OPPOSITION to discharge: it is very rare for a bankrupt to have a lawyer attend their discharge hearing. You certainly have the right, but it is not usually done. I suggest you speak to your trustee and ask for their advice.