Other changes to Bankruptcy laws

I understand that it was surprising that only changes to rules regarding the student loan discharge period and RRSPs were effected into law in July. Is there some sense of when the other proposed rule changes (eg first time bankrupts with surplus income having to be bankrput for min of 21 months) will be come into effect? This is a pretty important consideration for many people…

Posted from: Ontario

One Response to “Other changes to Bankruptcy laws”

A licensed trustee said...

That’s the million dollar question and no, we have not been given any indication of when the next portion of the new laws will be brought into force.

More troubling for someone worried about eh extension to 21 months for bankrupts with surplus income is whether or not they make the law retro-active for anyone currently in a bankruptcy. Since information about the extensions is public I can see the Court imposing the standard as soon as it is brought into force.

I haven’t been told this will happen – I am just wanring you that it might. If you think you need to file and you have surplus income I’d speak to a trustee sooner (rather than later…).