trustee not discharged yet?

April 8th, 2008 by Questions

We were discharged from bankruptcy in August 2007. My husband got a gst credit deposited into our account last week which we had expected to go to the trustee. Today came a letter in the mail from CRA saying `Your trustte in bankruptcy has told us to send any credits in which you are entitled directly to you; therefore we will issue payments to you even though your trustee has not been discharged.`

When is the trustee usually discharged after a bankruptcy? Should they have been discharged by now? What does their discharge mean?

Questions

One Response to “trustee not discharged yet?”



April 09, 2008 at 6:07 am, A licensed trustee said:

There is no set period of time for a trustee to be discharged following your own discharge from bankruptcy – in fact, the two are not dependent on each other.

When you are discharged it means that you are no longer responsible for the debts associated with your bankruptcy. When your trustee is discharged it means your file has been closed administratively and certain protections (for the trustee) come into place.

In a typical bankruptcy our firm obtains its discharge within 3 months of the bankrupt’s date of discharge. There are cases however when some aspect of the bankruptcy remains outstanding, a typical example might have to do with tax returns and the Canada Reveneu Agency, and in those cases the trustee is required to keep the file open until the matter has been dealt with.

If you feel something may be amiss with your file then I suggest you call your trustee and ask them why they haven’t closed it yet.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)