Question: In September 2008, I declared bankruptcy in Ontario. It was an emotional time in my life and didn’t know exactly what I was getting into.
My income is $95,000 per year and I owed $116,000 in unsecured debt.
I was supporting one of my common law’s two children, then half way through the nine month period, the other moved in with us.
Since then I’ve asked on several occasions for them to recalculate my surplus income. My original trustee left the business. They assigned me to another trustee from whom I’ve only heard once. That trustee has since left the business as well leaving one person to ‘wind up’ their business due to the death of the person who owned the company. The bottom line is that I’ve gotten no answers.
They sent me a letter last July stating that I missed a court date for a discharge hearing but I’d never been made aware of that required appearance. After contacting them, they advised that I had to finish my counselling and they would apply for another court date.
I asked them again to send me a revised amount owing based on the changes to my situation.
I’ve heard nothing from them since. I’ve called and left messages, but the message says they are no longer in the office as they’ve wound down the business and check messages occasionally.
I want to change trustees because clearly I’m not getting any level of service and want to deal with the amount owing so I can get on with my life.
As an aside, I am more than a bit annoyed because (although I didn’t know it at the time of filing) I could have done a consumer proposal at about 50 cents on the dollar and probably have avoided this whole mess.
My first thought is to see a bankruptcy lawyer, but I can’t afford that.
Any advice.
Answer: You are correct, you got very bad advice. A consumer proposal was probably the logical solution to your problems initially.
You have three choices.
First, you could contact the Office of the Superintendent of Bankruptcy and advise them that your trustee is not responding to your requests for information; perhaps they can help.
Your second option would be to contact a bankruptcy lawyer. I realize that you said that you can’t afford it, but if you are earning $95,000 per year, it may be wise to save $1,000 and get some good, independent advice from an expert. You are currently an undischarged bankrupt, which in the long run will cost you a significant amount of future hassle and money.
Your final option may be to file a consumer proposal. It’s unusual to file a proposal while bankrupt, but it is not impossible. If the proposal is accepted by your creditors, it serves to end your bankruptcy. An Ontario bankruptcy trustee can provide you with more information.
