Length of Bankruptcy

March 14th, 2010 by Questions

Hi:
I started out with thinking I must do all I can before declaring Bankruptcy. I started with the proposal but it was rejected. Now I’am just about to file bankruptcy. Iam so stressed out. I can not think normal. You must be in the same state. Where is relief. If total income is less then the threshold and you get more income from small jobs and it does not over ride the threshold amount and you declare it is it OK no extension to 21 months. If you go over into a surplus and is that after $200.00 over the threshold and if you report it and pay each month the 50% to the trustee do you avoid this extension for 21 months.

Posted from: Ontario

Questions

One Response to “Length of Bankruptcy”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

The surplus income rules and how they interact with the length of bankruptcy can be difficult to wrap your head around. But is sounds as if have most of it down. Essentially what happens is as long as your average income in the first 9 months of a bankruptcy is less than $200.00 over the threshold amount then you are looking at the shorter time period. However, if you income is more than $200.00 higher than than the threshold amount you are required to report this and the bankruptcy is automatically extended. This is irrespective of whether you are making your payments or not and there is no way to avoid this extension.

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