Changing job

December 5th, 2008 by Questions

What happens when during the bankruptcy period someone loses his/her job, gets a severance then finds a new job (while receiving severance), all this within a couple months before being discharged? Will the trustee ask for further repayment and object to the discharge? He/she has learned a valuable lesson about money management, but what now?

Posted from: Ontario


One Response to “Changing job”

, A licensed trustee said:

You probably won’t like this answer…

When you receive a severance package most trustees allow you to allocate the income to each of the weeks of the package thereby reducing your surpl;us income obligation. This works well for people that don’t immediately find a new job.

In cases such as yours if the severance was received as a lump sum payment then it is allocated to the period between your old and new job. In most cases this results in a significant surplus income obligation.

Yuo should go and speak to your trustee and see what can be worked out.

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