I have just been discharged from bankruptcy, but the trustee mentioned it would be a few months before he would be discharged… is this normal?
Trustee Discharge
Posted on Friday, November 3, 2006
posted by Questions @ 2:57 pm
1 Expert Comment:
At November 3, 2006 |
3:10 pm
, Barton Goth, GCO Inc. Bankruptcy Trustees Said...
You have nothing to be concerned with, this is standard practice and it is necessary to have this delay. Essentially a bankrupt is granted a discharge when they have completed all of their duties and obligations under the Bankruptcy and Insolvency Act. A trustee is discharged when the trustee has completed all of the necessary components to administer the bankruptcy. For example, the trustee will file at least one tax return during the bankruptcy. The trustee must wait until Revenue Canada has assessed the return before the trustee can apply for their discharge, the same type of thing happens with payments, once the bankrupt has made payments in full, the trustee must distribute those funds to all the proven creditors, as a result he must also wait until all the cheques are cashed an no money is left in the estate.
Realistically, the process is set up to be beneficial to everyone involved as it isn’t necessary to keep the debtor in bankruptcy until all of these types of administrative duties are complete (particularly if a creditor looses a dividend cheque and asks for it to be re-issued, it simply would end up punishing the debtor for events beyond their control), so it is arranged as a 2 stage process, with the first stage (i.e. the bankruptcy discharge) being the one that verifies that debtor is completed all his obligations and hence cleared from the balance of the unsecured debts.
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