Time of Discharge

August 17th, 2009 by Questions

I heard that on September 18, 2009 all first time bankruptcies will have a discharge time of at least 21 months, instead of 9 to 21 months. If I (or anyone) file before that date does the time of discharge extend for those who could have discharged in 9 to 21 months?

Posted from: Alberta

Questions

One Response to “Time of Discharge”



, A licensed trustee said:

That’s not true – on Sep 18 first time bankrupt’s that have income in excess of the Surplus Income Standards will automatically have their bankruptcies extended from 9 to 21 months. For person earinging less than the standard there won’t be any change.

It is unclear if the law will be applied retro-actively, but I doubt very much that it will be. The thing people should be “afraid” of is if for some reason they do not perform their duties properly and therefore have to go to Court in order to be discharged, the Court may decide to apply the 21 month standard… I think this is quite possible (and even likely).

So if you file before Sep 18 the new rules probably won’t automatically apply, but if you don’t complete your bankruptcy properly you should expect the Court to impose the new rules.

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