Discharged – Can Trustee Go Back and Get More Money?
May 20th, 2009 by Questions
I was discharged in January 2009. Now the Trustee has sent me a `Notice of Deemed Taxation of Trustee`s Accounts`. Since I was dishcarged by the court, why can the creditors oppose it now? Shouldn`t that have been done before my official discharge?
Also, I haven`t received my refund for 2008. Can the Trustee take it even though I`ve already been discharged?
Posted from: Ontario
One Response to “Discharged – Can Trustee Go Back and Get More Money?”
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.)
You must be logged in to post a comment.
May 21, 2009 at 9:09 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Firstly the Taxation of a Trustee’s Account’s has nothing to do with your discharge. What happens is that the trustee must account to your creditors, the court and the Superintendent of Bankruptcy for the distribution of monies pertaining to your estate. So this is the mechanism for doing that. It doesn’t permit the creditors to oppose your discharge it permits the creditors, court or Superintendent to oppose the trustee’s fees if they are inappropriate.
As for your tax refund, again this has nothing to do with your discharge. As part of the bankruptcy you loose any tax refunds for the year of bankruptcy, irrespective of whether you are discharged or not. The alternative would be that the trustee could have kept you in bankruptcy until the funds would received. So clearly it was more beneficial for you that they discharged you before the physical receipt of the refund.