Bankruptcy Fees

October 17th, 2013 by Questions

I claimed bankruptcy as I became a widower complete broke with 3 children. My bankruptcy stated that I would have to pay a sum of $ 200.00 a month for a period of 9 months. After 4 months, I got a job and now my bankruptcy corporation want to take much more money from me and it is not even a reasonable amount – it is over 10K in total. This is preposterous and they informed me that they will take me to court and I might even be prosecuted. I explained to them that, in all honour, I agreed to pay them what they agreed upon which I did and I also signed documentation. How do I justify myself with this dishonest corporation.

Posted from: Ontario


One Response to “Bankruptcy Fees”

, A licensed trustee said:

What you are talking about is called “Surplus Income” and it should have been explained to you before you filed. The government believes a family of 4 can live on $3,728 per month of after tax income. If on average you earn $3928 per month or more then you are required to make additional payments into your bankruptcy equal to 50% of whatever amount you are over the $3728 for 21 months. That suggests to me that you must have approximately $5,000 a month coming in.

If you don’t believe any of this was explained to you before you filed then you should contact the Office of the Superintendent of Bankruptcy to discuss your concerns.

If you weren’t told any of this then you are justifiably angry, but it won’ t change the fact that these payments are required under the law.

You may want to speak to another trustee about filing a proposal to annul your bankruptcy – depending on how much you owe, a proposal might be more manageable.

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