Free Consultation

Bankruptcy challenge

Who can challenge a bankruptcy discharge, on what basis and when?

Posted from: Manitoba

One Response to “Bankruptcy challenge”

A licensed trustee said...

The normal list of persons that can “oppose” a person’s discharge include creditors with proven claims, your trustee, and/or the government agency that monitors the bankruptcy process (the Office of the Superintendent of Bankruptcy).

Creditors may oppose if they feel your conduct prior to filing was inappropriate – say you took a $1,000 cash advance the week before you filed. Creditors may also oppose if they feel you have the abvility to repay a greater portion of your debt that you have so far. Our office handles between 300 and 400 proposals and bankruptcies each month and creditors “oppose” in fewer than 1 file per month.

Trustees oppose much more frequently. If you don’t perform all of your required duties within the required timelines then your trustee is not allowed to discharge you from bankruptcy. Instead you are required to appear in Court and explain why you should be discharged when you didn’t do everything that you were supposed to… This happens far too frequently in my opinion, but luckily, if you do what you are supposed to it won’t happen to you.

The final type of opposition, from the government is very rare indeed – I can’t recall a file in the last 5 years were it has happened.

So, do what you are supposed to do when you are supposed to do it and your bankruptcy should end “automatically in either 9 or 21 months if it is the first timne that you have filed.