change in income

November 22nd, 2012 by Questions

if my income decreases during my bankruptcy is it possible my term will change from 21 months to 9 months

Posted from: Ontario


One Response to “change in income”

, A licensed trustee said:

You are required to report your income mfor the first 6 or 7 months of ytour bankruptcy. At the end of that period your trustee will do a calculation to determine your average monthly income. If your average monthly income is $200 or more higher than the threshold for the number of people in your household then your bankurptcy will be extended from 9 to 21 months. Once it is determined that your average income is over then you may decide whether to simply pay the average penalty for all 21 months or you may continue to submit statements and pay the actual penalties.

If your sitaution changes dramatically you have the right to request mediation to try and work out an appropriate payment arrangement with your trustee.

For a more detailed explanation you need to speak with your trustee – if you haven’t filed yet then ask this question BEFORE you do. If you have filed then you need to call your trustee…

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