Canada Bankruptcy - Late Fees

Bankruptcy Canada Questions & Answers

Author:		Anonymous
Date:		January 7, 2009
Question:		Hello - I have a question? If you file for bankrupcy and miss payments to the trustee- what happens? I am under the understanding that you would not recieve a discharge from the courts. If you do not a get a discharge can the creditors start to collect the debt? If you do not recieve a discharge and owe money to the trusee do you obtain a discharge once paid in full? Thanks
From:		Karen Alger & Associates Inc. - Alberta Bankruptcy Trustee
Date:		January 7, 2009
Answer:		If you are remiss in any of your duties and the court Adjourns your discharge - once the Trustee becomes discharged, your creditors can once again being collection activity. You are effectively still bankrupt and if you want to obtain a discharge it means appearing in court and having a judge determine what is required to be paid before you are discharged. You will generally have to provide income information for the period that has lapsed and payments will be based on the total period. (sometimes this could be years) You will likely have to pay your Trustee an estimated $2-3000 just to get an application before the court and any further payments will be in addition to that. It is not a very pleasant situation and it is much much better to deal with the matter prior to that stage. Karen Rideout phone: (403) 296-2973 Alberta Bankruptcy