Trustee wants statements etc from 3 years ago
December 21st, 2010 by Questions
I have recently entered into bankruptcy. Over 3 years ago I sold a house which did earn some income. I used the majority to pay off bills, and for downpayment. There was still a fairly large sum remaining that was used to pay off other bills and buy furniture etc but I don\’t have receipts or proof of this now but my trustee would like to see this stuff and they say my bankruptsy won\’t be discharged till I show this information. What should do?
Posted from: Ontario
One Response to “Trustee wants statements etc from 3 years ago”
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December 22, 2010 at 8:02 am, A licensed trustee said:
Your trustee is required by law to look into transfers (sale) of property for up to the 5 years prior to the date you filed for bankruptcy. What they are checking is to see if you used the funds inappropriately when the money should have been used to pay down debt.
At this point all you can do is put together the best list that you can – if your trustee is not satisfied with what you can provide (or doesn’t feel that the way you used the money was appropriate) then they will likely book a hearing and allow the Court to decide how to deal with you. The most common result of a Court hearing is that you may be required to pay an additional amount into your bankruptcy for the benefit of your unsecured creditors.