What determines if ones bankruptcy should be extend beyond 9 months

Question: Just curious about surplus income payments and ones discharge date. Currently it states an automatic discharge at 9 mths if you complete all that is required. Hence, even if you make your surplus payments what would determine if they decide to extend your bankruptcy beyond the automatic 9 months?

Answer: It is possible that a bankruptcy can be extended past nine months, even if you complete all of your duties.

First, if you were previously bankrupt, you are not eligible for an automatic discharge after nine months.

Second, if you had significant surplus income during your bankruptcy, it is possible that one of your creditors may object to your discharge, on the basis that you had sufficient income to file a consumer proposal as an alternative to bankruptcy.

You should discuss your expected income with your trustee before filing bankruptcy, so that you can understand the chances that your bankruptcy will be extended due to surplus income.

Labels: consumer proposal, surplus income