January 8th, 2009 by Questions
Could you please tell me if Bill C-12 has gone through especially the following:
A first-time bankrupt with surplus income would be required to pay that surplus income into the bankruptcy estate for 21 months, or further if ordered by the Court. For second-time bankrupts, the period would be 36 months.
We are very confused about this issue as we understand your website to say it has not gone through as of yet, but our Trustee is telling us it has and my husband is required to pay surplus for 21 months or more. This is my husband`s first bankruptcy.
If C-12 has not gone through, why would the Trustee be telling us it has been changed to a mandatory 21 months and 9 months no longer exists?
Posted from: Ontario
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January 09, 2009 at 11:04 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Bill C-12 has not gone through as of yet. This doesn’t mean your husband won’t have to pay for 21 months. What we find is that Bill C-12 in many ways is codifying current practice and current practice is where there is considerable surplus income the court will likely extend the bankruptcy by an additional 12 months. This is not guaranteed, but it is quite common.