Question: How can I be sure I am being properly informed by my trustee, is their a governing body that I can speak too? I feel things went very wrong for me and my husband in court and I was not aware I could be badgered by a lawyer about my finaces while sitting in a public waitng area, we were being treated like a criminals. I was to be discharged from bankruptcy, but the crown is fighting this (they want $8500)I have student loans over 12 years old. We have two chidren under 6 and make 3600 monthly with no assets and an old car, renting a home. The trustee said not to worry. I did not know it could go like this. I could have been better prepared. Where are the rules, the lawyers know them, the trustees knows them, what about the public. Should I get a lawyer.
Please help
Answer: You have raised two separate issues.
First, trustees are licensed by the federal government. If you do not believe that your trustee has adequately informed you, you may talk to a representative of the Office of the Superintendent of Bankruptcy (the government agency that regulates trustees).
Second, you have raised the issue of your discharge from bankruptcy. It appears that the federal government is opposing your discharge from bankruptcy due to 12 year old student loan debt. Student loans older than 7 years old are automatically discharged in a bankruptcy, so it is highly unusual that the Crown would oppose a discharge for a very old and relatively small loan. However, any creditor in a bankruptcy has the right to oppose a bankruptcy discharge, and to request that the court impose additional conditions, such as requiring you to pay an additional amount.
There are numerous cases where the federal government will pick a case at random, hire lawyers, and oppose a discharge. In many cases the lawyer does not even know why the government has chosen to oppose the discharge; they simply show up at the discharge hearing. It is beyond the scope of this web site to explain the inner workings of the federal government.
In your case, if you do not have surplus income, and if you don’t have any assets, it is unlikely that the court will impose any additional sanctions. However, the court is obliged to hear both sides of the case, and therefore in the case of an opposed discharged the court may adjourn the hearing and reschedule the hearing for a longer block of court time.
It is impossible to be fully prepared in court. Any creditor can make any argument they want in court, so until the court and the trustee and the bankrupt hears what the creditor says in court, it is impossible to prepare a response.
In general, the court is fair and impartial. If the creditor has evidence that your earnings are higher than what you have disclosed to the trustee, or if there are other mitigating factors, the court may order you to make additional payments. Conversely, if the court determines that you have fulfilled all of your duties, it is likely that you will receive your discharge. There are even cases where the court “scolds” the creditor for bringing a ridiculous action before the court.
It is your right to hire a lawyer to represent you in court. If you do, you should select a lawyer with bankruptcy court experience.
A final suggestion would be to raise your concerns directly with the trustee. If the trustee did not oppose your discharge, that means the trustee wants you to be discharged. It may be that what you interpreted as being “badgered” by the lawyer (which may in fact be true) may also have been the trustee’s attempt to get the lawyer to state why they are opposing your discharge, so that the matter can be resolved to everyone’s satisfaction. Again, meeting with the trustee to fully explore your options should be your first step, after which you can decide if hiring a lawyer is needed.
