Second Bankrupcy

March 12th, 2012 by Questions

I am just ended my two year cut off for my second bankrupcy. My trustee told me I did not pay enough and that they are extending it another year. I think that is unfair as I submitted faithfully monthly payments and all my payroll stubs and sheets every month. They said I made more money on my new job and should of been paying more. What I don’t understant is why as a tustee they are not responsible to let you know that your payment is higher now with the new wage instead of waiting a year later to tell you. Now they say I owe over $6000 when I could of been paying the bigger payment each month. They get my payroll stubs each month so why can’t they let you know then? Now it is more stress to deal with. I just moved into a better place and will be paying more money now and would never of done it if I would of known. With my car payment, new rent, utilities, car insurance, life isurance and medical my payments will now be $2112 a month and I take home $2762. Groceries are usually $350-$400, so now it will leave me $250 for gas/ car maintenance etc. I just don’t understand why they don’t tell you a year ago that you should be paying more instead of waiting until the end? My partner had brain cancer and I was dealing with a lot in my life at the time of bankrupcy and wish they would of taken the effort to let me know. Shouldn’t they have to?

Posted from: British Columbia


One Response to “Second Bankrupcy”

, A licensed trustee said:

Normally, this type of question is deleted – you should be speaking to your trustee if you have concerns/complaints about how your bankruptcy was handled, but in this case, it is not clear that anything was done incorrectly.

If you file for bankruptcy a second time the procedure takes a minimum of 24 months. In month 22 your trustee is REQUIRED BY LAW to review your monthly income and expense and if your average income for the first 22 months is higher than the government threshold for your size of family then your bankruptcy is extended by another 12 months. Your trustee doesn’t have any discretion in this regard – it is a mathematical exercise.

This should have been explained to you BEFORE you filed for the second time. If it wasn’t, you may have grounds for a complaint (you’ll still have to pay the extra money, but at least you can see that your trustee does a better job of explaining to the next person that comes along…).

Sorry, but if you have earned more than the government threshold you are required to pay more.

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