Trustee opposed discharge of the bankrupt

April 28th, 2009 by Questions

My common-law spouse and I applied for bankruptcy in Nov 2006. We did not complete the requirements and as a result the trustee opposed discharge of bankruptcy. My spouse and I broke up in 2008. He said that he did not want to continue with the bankruptcy. Where does that leave me?

The trustee submitted my tax return for 2006. I just submitted my tax return for 2007 & 2008. The 2008 return will reach Revenue Canada before the 2007 because it was e-filed and the 2007 had to be sent by mail. I contacted Revenue Canada to find out if I was set up for direct deposit and they advised me that there were instructions on my file from the trustee to forward any refund to them. There was also a `keep code` on my file that has to do with the substantial amount of taxes my ex-spouse owes for a business that he had. Before we filed for bankruptcy I was not legally responsible for this debt.

My questions are:
– Because we did not follow through with the bankruptcy does this mean that it is like we never filed or is the bankruptcy in `limbo` until we complete the requirements?
– Am I now legally responsible for all the debts we listed in the bankruptcy even though many of them were not legally my responsibility?
– If the trustee receives my tax refund for 2008 is he allowed to keep it?

I know that I will need to contact my trustee but I would like to have some information before I do.

Thank you.

Posted from: Alberta

Questions

One Response to “Trustee opposed discharge of the bankrupt”


, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Firstly you are right you need to contact your original trustee as many of these questions I cannot answer without being more familiar with your case.

In terms of your current status, you are currently still in bankruptcy. But there is no court protection so legally you are responsible to pay your debts and your creditors have the legal right to try to collect on these debts (these rights are reinstated once your trustee was discharged).

Now your trustee will likely be able to split the bankruptcy and allow you to complete the process without your ex being involved. But be advised this is not going to be a simple process and there will likely a sizable fee associated with this.

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