discharge and surplus income

November 28th, 2005 by Questions

is there a limit on income earned after court if nine months are up..and trustee is opposing our discharge, and we go to court..what should we expect from our trustee? one spouse is now on sick benefits.we have paid 30,000 back to trustee in 9 mths.. and feel we’ve paid enough..our total debt was only 65,000 and we have been through enough..we cant make ends meet and i thought bankruptcy was supposed to ease the burden not make it worse….


One Response to “discharge and surplus income”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

What sounds like is happening is that your trustee is fulfilling his obligation to inform the court of substantial surplus income during the bankruptcy. At court, the registrar will determine how much will be required to be paid to be eligible for a discharge. The typical line of reasoning is that if you have substantial surplus income coming in during bankruptcy, you probably would have been in a position to avoid a bankruptcy by at least offering up a proposal, if not making some other arrangements to deal with the existing debt. There is no technical limit for which the court can impose, and the result it is heavily dependent on the jurisdiction you live and the specific circumstances of your file. In Albert, we have found the rule of thumb the court uses is 12 months, in situations with substantial surplus we always tell people that you have to plan on you bankruptcy lasting and additional 12 months (this is on top of the original 9, for a total of 21 months) and during this period they need to be prepared to continue making the same level of surplus payments they were during the initial 9 months.

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