Bankruptcy

August 30th, 2013 by Questions

I owe 5500 on my bankruptcy as my life gets slightly better the amount I owe keeps growing and growing I cannot pay the monthly amount they want and a lower payment just means this debt goes on forever how do I fix this

Posted from: Ontario

Questions

One Response to “Bankruptcy”



, A licensed trustee said:

It sounds like what you are talking about is the requirement to pay “surplus income”. For people unfamiliar with this term, when you file bankruptcy there is an income test everyone is subject to. If your income is at or below the government standard then you usually only pay a basic fee to file for bankruptcy. If your income is above the standard you are subject to additional payments equal to 50% of the amount you are over the standard.

These extra payments are calculated for a period of 21 for a first bankruptcy, 36 months if you have been bankrupt before.

If you are not able to make the required payments by the end of the 21 months your bankruptcy can be extended to give you more time to pay – your bankruptcy will not be complete until you have paid all of the required amounts. If your bankruptcy is extended the total amount you have to pay is not increased, so it does not go on forever…

Call your trustee if you’d like a more detailed explanation – all of this should have been explained to you BEFORE you filed.

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