surplus income

October 27th, 2008 by Questions

I have gone into bankruptcy because my proposal was rejected by creditors. I have to pay 200 a month in surplus income this is my first bankruptcy , I was told my situation would be reevaluted in 7 months and if I still have surplus I will not be realised for an additional 12 months, I thought for first time filing the discharge was after 9 months if you followed al conditions set forth can you expalin teh difference.

Posted from: New Brunswick


One Response to “surplus income”

, A licensed trustee said:

The Bankruptcy and Insolvency Act requires your trustee to review your bankruptcy payments sometime before the expiration of the 8th month of your bankruptcy – most trustees do this in month 7 to make sure we get it done on time…

Depending on the facts of your case, your trustee is permitted to extend your bankruptcy by up to 12 additional months. The extension is used if, in the trustee’s opinion, you could have afforded to offer your creditors a proposal instead of filing for bankruptcy.

I know that different regions in the country handle this aspect of the law differently. I understand that in the maritimes the Court has taken the position that if you have to pay surplus income during your bankruptcy then you could have offered a proposal. In thse cases the bankruptcies are extended.

This practice doesn’t hold true for Ontario or the west – in these regions it is up to the individual trustees to determine in the bankruptcy should be extended or not.

Sorry, but it sounds to me like your trustee has advised you correctly for New Brunswick.

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