What am I Required to Do During the Bankruptcy?

A typical 1st time bankruptcy lasts for a minimum of 9 months and for a 2nd bankruptcy that time will be 24 months.

The bankruptcy will usually only be extended for longer than that if any one of the following three things happen.

  1. If you have surplus income - The bankruptcy will automatically be extended a further 12 months.
  2. A creditor requests a court hearing – The most common reason for this is if the creditor has grounds to believe you’ve not disclosed pertainant information to the trustee
  3. The trustee requests a court hearing - The trustee may do this if you have not completed the necessary duties you undertake when you assign yourself into bankruptcy.

 

During the bankruptcy you are required to do the following duties:

  1. each month, submit a monthly budget of your income and expenses and provide proof of your income to the trustee;
  2. attend two credit counseling sessions;
  3. provide the trustee with information so that the trustee can file your outstanding tax returns;
  4. make a payment each month which is based on your household income; and
  5. other duties as may be specified by your trustee in your bankruptcy.

 

It is important that these duties are completed in a timely manner, so that you bankruptcy can be completed as soon as possible.

Howard Hayes

It is important that you understand these duties before filing your bankruptcy and your trustee at Hoyes Michalos & Associates Inc will meet with you before you file to ensure that you fully understand what will be required of you during the process so that hopefully it runs as smoothly as possible for you.