I have a conditonal bankruptcy discharge based on paying my trustee, $1180.00. That was in 1996. I made some payments then when I got remarried in 1997, there was many serious problems with family issues, health and financial. This has interrupted my attention to my bills and obligations.

I contacted the trustee a few years ago and they said I would have to come up with the full amount in three months or an additional fee would be added of $250.00. I could not do this.

So about six months I contacted them again and they said another $250.00 would be added when they would pull the file from their warehouse when I would have the payment in full.

So I was not able to come up with the full amount at that time, but recently I borrowed some money from a friend for $1030.58 which is the balance that was owing and sent them a cheque a month ago. They have not replied and the cheque hasn't cleared the bank. So can they charge me these extra fees? There was nothing in writing about extra fees being added in the court order, they only mentioned interest charges in the court order. But also isn't their a statue of limitations in regards to the time that has passed even if it is a court ordered bankruptcy discharge in connection with fees to the trustee?

When you didn't complete your duties and comply with the Conditional Order of Discharge, the Trustee would have obtained another Court Order adjourning your discharge and closing their file. The original Conditional order would no longer be valid. When an undischarged bankrupt comes forward many years later there is considerable work involved in reopening the file, obtaining the required information from you and making the necessary applications to Court for your discharge. That is why additional funds are required and must usually be paid before the Trustee will now do any work for you. There is no Statute of Limitations in undischarged bankruptcy files. If your Trustee is reluctant to reopen the file you have the option of hiring a lawyer to make the required Court applications but the lawyer must notify the Trustee of those applications.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca