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Conditinal Discharge

Hello,

I filed bankruptcy and have a discharge hearing next week. Most of my debt is generated due to my gambling habit (which I stopped almost a year ago, cost me almost my life). I regret what I did and will regret it rest of my life for sure. I was mentally distroyed due to marital break up.

I had an interview with my trustee. He suggested that I should sign a consent stating that I ll pay some amount (3% of my debt) and ask for conditional discharge. I signed it because he mentioned that, most likely court will ask me to re-pay some of my debt because of gambling..and that amount could be much higher than what is stated in the consent. I have already made payments for 9 months (income surplus).
Currently, I am working full time but I don`t know If I am going to be employed for another year or two. Company that I work for, is closing the manufacturing plant and already lay-off 10 people from my department.

Does court might ask me to re-pay more than what I signed in the consent form?

How does the court act in the case of gambling cases? Always asks for re-payment of some portions of debt? Even employed or not.

Thanks in advance.

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One Response to “Conditinal Discharge”

A licensed trustee said...

In my opinion, your trustee is trying to do you a “favour” – by consenting to a Conditional Order and repayment amount before you get to Court, the trustee is hoping the Court will accept the agreement and view your consent as an indication of your rehabilitation (from gambling).

You are not required to sign a consent and in fact, if you are having second thoughts you can resend your acceptance of the terms of the consent in Court.

I will offer a word of caution: the Court has the right to set any terms that it feels are appropriate when granting your discharge. They may decide that you’ve done enough, or they may decide that due to your gambing some further repayment is required. Based on my experience, further repayment is almost always ordered (I can’t remember when it wasn’t) – it’s simply a question of how much you will be ordered to repay.

The 3% your trustee has suggested sounds like a “low” amount to me – you’ll have to decide for yourself if you think you can do better by speaking directly to the Court yourself…