Bankruptcy Question & Answer Forum - Canada

Author:		Steve
Date:		November 1, 2005
Question:		I filed in Feb 2003 and was initially told that I would receive and absolute discharge 9 months from that date. About 7 months into it, they reviewed my file and determined that I was earning too much money and they would be requesting a conditional order with and additional payment required of 5000 before absolute discharge. So here I am, nearly 3 years later having paid approximately $2800 to the trustee and they have closed my file. Their claim was that I was too slow in paying this off. Now, CCRA, one of the creditors from the bankruptcy are garnishing my wages. This leaves me in a situation where I can no longer afford to make payments on the bankruptcy and I'm continuing to have to pay my creditors. What about the 2800 I've already paid the trustee? Shouldn't that be returned to me if I have to pay my creditors anyways? If I somehow can pay the remaining balance and get the absolute discharge, will CCRA return all the money that they garnished? What can I do to get this over with and on with my life?
From:		Bruce, Alger & Associates Inc.
Date:		November 2, 2005
Answer:		You have a number of questions here. Firstly, the money you already paid to the trustee should or has been paid to the creditors, net of costs. CRA will not take more money than is owed, so you will not be getting a refund from them. Finally you have a number of choices in how to conclude this matter. 1. Go talk to your former trustee to see what they want to finish the file. 2. Hire a lawyer experienced in insolvency matters to help you get your discharge. 3. Try and make deals with the creditors yourself and then once all claims are dealt with, apply to the court for your own discharge. Bring on your own discharge application right now based on a change in circumstance and a condition to pay that is too onerous. Bruce Alger phone: (403) 296-2970 balger@alger.ca