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Trustee discharge when the bankrupt person is NOT discharged

I received a notice that my trustee intends to apply for a discharge, even though I have not been discharged. I have not made all my payments yet. Can the trustee ask for a dischrge even if I have not finished paying? Can I oppose the trustees discharge?

Calculation of excess income – the amount I was order to pay was $4870.00, for conditional discharge. The trustee received $2960.50 from post tax refunds and $600.00 in payments from me. There was $4.38 in interest attributed to the money held for a total of $3564.88. (money to be distrubuted)

Does this mean that the total left owing to meet my obligation for conditional discharge is now $1305.12?

The trustee orginally agreed to a payment scheduled thaat would have had the $4780.00 paid in full by DEC. 2011 – but it appears they have jumped forward and are now trying to get themsleves discharged before I complete my payments. How can I stop this from happening? The date of the letter for the 30 day notice to creditors who oppose is SEPT 8th, 2011. If I pay the $1305.12 before OCT. 8th, 2011 will this change the trustees request for discharge? Would the trustee now have to re-evalutate?

Also on the Didvident sheet, my student loan debt is missing a very large sum of money $50,000+ which was the reason for filing this second bankruptcy – why is it missing?

Posted from: Ontario

One Response to “Trustee discharge when the bankrupt person is NOT discharged”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

Firstly, you cannot oppose the trustee’s discharge. You can attend at court and request leniency, but it would be more appropriate for you to contact your trustee in advance and do that before it goes to court. Leaving it until the court date would likely be seen as to little to late. As for the conditional discharge, it is difficult to comment without reading the text of the discharge. But normally payments and taxes are separate issues. So if you have paid $600 and the order was for $4,870.00 then there would likely be $4,270.00 still owing. The only time this would change is if the conditional order stipulated that the outstanding amount was to be reduced by tax refunds. As you can see everything is stipulated in that order, and without seeing the order it is very difficult to determine what the exact amount is. But you are right that if you send in the required amount then things would be re-evaluated.

My next question is have you been consistent with the payment schedule that you had agreed to. From the sounds of it you have not and that is the reason that they are applying to court, but you would know better than I would.

The final question is about the dividend sheet, once again you are best to discuss this with your trustee as I am simply speculating, but it is probably not listed as a result of the failure of student loans to send in a proof of claim to your trustee. The amount can only show up there if a properly filed proof of claim is received by your trustee.