Length of Undischarged Bankruptcy

January 31st, 2012 by Questions

My pension income is approximately $600 per month over the allowable bankruptcy limit for my size household so that I will have to pay the trustee $300 per month and my bankruptcy will have to be 21 months long instead of nine months. I heard somewhere that if someone like a relative or friend “prepaid” the $300 per month for me, for every $300 that is paid the actual time I am an undischarged bankrupt can be reduced by a month. Is this true?

Posted from: Ontario

Questions

One Response to “Length of Undischarged Bankruptcy”


January 31, 2012 at 1:59 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

I have never heard or seen anything like that occur, the way the discharge works is that you are eligible to be automatically discharged if completed all your duties, including making the surplus payments. This discharge would occur on the 21 month anniversary from the date you filed for bankruptcy. Technically anyone can apply for a discharge earlier than that, but the big question is would the court even consider it? Remember, one of the obligations that you have is to fill out monthly income and expense statements for each month that you are in bankruptcy. So sometimes the reason a bankruptcy lasts as long as it does has nothing to do with payments, but is related to the other obligations you might have as part of the bankruptcy.

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