Archive for the ‘bankruptcy discharge’ Category

Question: I filed bankruptcy 8 months ago was everthing ok till now and my trustee told me I have to go court soon . What s waiting for me now in the court?

Answer: In most cases in a first bankruptcy you are eligible to be automatically discharged after nine months. If you were bankrupt before, or if you have not completed all of your duties, or if any of your creditors have objected to your discharge, you are required to attend a discharge hearing in bankruptcy court.

At the hearing the Bankruptcy Registrar will review your case, and determine what further duties you will be required to perform to get your discharge (such as making additional payments).

For more information, you should consult your trustee and ask them to explain in detail what will happen at court, what questions you will be asked, and what you need to do to prepare.

Here’s an article on the effects of a bankruptcy discharge for more information.

Question: what happens if you don’t show up for bankruptcy court?
and if the trustee has been discharged, then how long will it take for an automatic discharge for the person who filed? And if the trustee is discharged and the debtor did not comply with all the provisions, what happens to the debtor, an automatic discharge?

Answer: In a normal first bankruptcy if you have completed all of your duties and no-one objects, you are eligible to receive an automatic discharge at the end of nine months.

If you don’t complete your duties, the trustee is required to object to your discharge, and a discharge hearing is scheduled in bankruptcy court. At the discharge hearing the trustee will explain which duties have not been completed, and the Bankruptcy Registrar or Judge will determine the conditions of discharge.

For example, if you had surplus income during the bankruptcy and you did not make the required payments, the court will issue an order requiring you to make the payments.

If you do not appear in bankruptcy court, the court may simply issue a “No Order”, which means the trustee can now apply for their discharge, but you remain bankrupt. Because you were not discharged, your debts are not discharged (that’s the effect of a bankruptcy discharge).

If you were not discharged, you should contact your trustee and determine what duties remain to be completed, and then ask them to make an application to court to obtain your discharge.

Question: I was just discharged from a firstime personal bankruptcy. I have a debt that was forgotten and the creditor was not listed on the liabilities list for my bankruptcy. I just got served a notice from small claims court in regards to this bill, do I have to attend or do I give a copy of my discharge from bankruptcy?
Thank you for any information.

Answer: Even though you are discharged, you should contact your trustee and ask them to send the bankruptcy paperwork to the small claims court and the creditor so that they can stop the lawsuit.

Question: if i had a bankrupsy 37 years ago and aply now what happens

Answer: If you file bankruptcy for a second time you are not eligible to be automatically discharged. You will be required to attend a court hearing, and the bankruptcy judge will determine how long your bankruptcy will last. Since your first bankruptcy was 37 years ago, it is likely a second bankruptcy would last an additional six months to nine months, although that is up to the judge.

Question: Hi I am a first time bankrupt and my discharge is soon approaching and I am concerned about my creditors opposing the discharge. If I met all of my obligations but a creditor opposes, will I be required to pay them more money before being discharged? I dont have money, and cant afford to pay them anymore. I don’t want to stay bankruptcy indefinitely. How common is it to have a bank object to the discharge when dealing with one of the big 5 Canadian Banks? I owed about $80 000 in unsecured loans, line of credits and credit cards when I filed. Also if it is extended to 21 months, can it be extended beyond that time frame?

Answer: There appears to be significant confusion surrounding bankruptcy discharges. Please see our detailed comments in the previous post on the length of a bankruptcy.

In Ontario it is very unusual for one of the big Canadian banks to oppose a bankruptcy discharge, and it is unusual for a first bankruptcy to last for more than 21 months.

These are questions that you should ask your trustee, since only they are familiar with your file, and the creditors, and they will know if any creditor is objecting to your discharge.

Question: Hi, If a trustee extends ones bankruptcy for a first time bankrupt an additional 12 months to 21 months due to surplus income, is there an automatic discharge hearing after 9 months? If a creditor opposes the discharge, could a first time bankrupt remain bankrupt for more then 21 months? I have made all my payments to my trustee and taken the credit counselling courses but am worried because after reading some of the postings on this blog, some people are still not discharged after 21 months. Please advise.

Answer: There are two ways for a trustee to extend a bankruptcy. First, they can oppose your discharge, in which case a discharge hearing is held in bankruptcy court, and the Bankruptcy Registrar decides how much longer your bankruptcy will last, and what you will be required to pay.

Second, the trustee can do what’s called a “deemed opposition”, where you and the trustee agree that you will pay surplus income for up to an additional twelve months. There is no court hearing required. Based on what you have said, this is probably what your bankruptcy trustee has done.

It is possible for a creditor to oppose your discharge. However, that is very rare, and they generally would file their notice of opposition at the start of the bankruptcy, so your trustee is probably already aware of any potential oppositions.

It appears that both you and your trustee have everything well under control. However, if you are concerned, you should contact your trustee and ask them to walk you through the process to allow you to obtain your discharge.