length of bankruptcy
When my husband and I applied for bankruptcy we were told that we would be finished in 9 months, recently we have been extended to 18 months. Our money situation at first was I clear on a average 2700 per month, my husband a pension of 1300 per month. Now my husband makes an additional 1100 per month. What are the reasons for an extention and who makes that descion. Also what is the difference between a absolute and a conditional discharge.
Posted from: British Columbia
The reason your bankruptcy is being extended is the fact that your income is so much larger now. The higher your income, the longer your bankruptcy under the old rules. Your trustee could have extended your bankruptcy by 12 additional months instead of the 9 that they did select. If you lived in Ontario or the Maritimes they would have, so while you may not be happy about paying more – it would have been more if you lived in another part of the country.
Under the new rules that come into effect Sept 18, your bankruptcy would have been 21 months long based on the income you ahd when you filed. The new rules are being put inbto place to make the system more fair for all Canadians. The amount you are required to pay won’t depend on where you live or your trustee anymore…
An Absolute Discharge means your bankruptcy is over and you are no longer responsible to repay your debts. A Conditional Dishcarge means you have to complete some additional duties (the conditions imposed by the Court) in order to be discharged from your bankrutpcy.