Change in discharge time???

August 6th, 2013 by Questions

I filed with a trustee in Oct 2012, as a 1st time bankruptcy. She said it would be 9 months to discharge. Had a counsel session with her in Jan 2013, she says its going to be 21 months until I am discharged! Is this common? Should I get a second opinion???

Posted from: Alberta

Questions

One Response to “Change in discharge time???”



, A licensed trustee said:

First time bankruptcies run for either 9 or 21 months – this should have been explained to you. For the first 6 months of your bankruptcy you are required to report your household income and expenses to your trustee. In month 7 your trustee calculates your average monthly income for the first 6 months and if your average is more than $200 over the government guideline for the number of people in your household your bankruptcy is automatically extended to 21 months and you are responsible for Surplus Income payments. If your average income is less than $200 over the threshold you bankruptcy runs 9 months and no Surplus Income payments are required.

It sounds like in month 4 your trustee determined your income was going to exceed the threshold when they did the averaging so they told you as soon as they became aware of that fact.

You have the right to contest the math – if you disagree with the math you may ask for Mediation.

If you don’t think any of this was explained to you BEFORE you filed you may want to lodge a complaint with the Office of the Superintendent of Bankruptcy as trustees are required to make sure you understand all of this before you file. In most cases, your trustee knows before you file , how long your bankruptcy will run. It is only in cases were you under-reported your income before you filed, or you started making more money after you filed, that the length of bankruptcy changes.

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