During bankruptcy

March 6th, 2011 by Questions

I chose a Licensed Insolvency Trustee and initially they confirmed my fees and discharge time should be nine moths. After paying agreed amount and after nine months, they are now asking me for paying more uncertain amount of money for 21 months. I find it unfair and breach of commitment. Could you please tell me what I should do now.

Posted from: Ontario


One Response to “During bankruptcy”

, A licensed trustee said:

If you honestly don’t think your trustee told you about the 9 vs 21 month rules then you should lodge a complaint with the Office of the Superintendent of Bankruptcy (the government agency that licences trustees).

Here is how the law works: when you file for bankruptcy you are required to submit monthly statements disclosing all of the household income and expenses for the first 6 months of your bankruptcy. In month 7 your trustee will determine what your average household income has been for the first 6 months and if your average is $200 or more higher than the government standard for your size of household (number of people living together) then your bankruptcy will be automatically extended to 21 months. If your average is less than the standrard plus $200 then you are eligible for a 9 month bankruptcy.

In most cases your trustee can tell you before you file, how long your bankruptcy will run (either 9 because your income is below the standard or 21 becuase your income is much higher than the standard). It is only in the cases were your income is very close to the standard (or in cases where your income goes up after you file) that people get caught unaware.

Regardless, your trustee was required to explain all of this to you BEFORE you filed. If they didn’t then you should lodge the complaint – it likely won’t help you, but at least they won’t misinform anyone else…

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