When your bankruptcy case has been closed.
Question: Is it possible to close a bankruptcy case before the client is discharged?What does a person do if they thought they had been discharged a number of years ago and their credit report indicates that they have, but the trustee says that they haven't? And the trustee says that the case has now been closed?
Answer: There are two different concepts to understand reagarding getting a dishcarge from a bankruptcy in Winnipeg. First, the bankrupt is discharged once they have completed all of their duties, which include making any required payments to the estate, completing their two credit counselling sessions, providing information to allow the trustee to file tax returns, and surrendering non-exempt assets. If these duties are not completed, the bankruptcy will not be discharged.
Second, the trustee is discharged once they have completed the administration of the estate, which includes filing all necessary paperwork with the Office of the Superintendent of Bankruptcy.
It is possible for the trustee to be discharged BEFORE the bankrupt is discharged. If the bankrupt does not complete their duties, the trustee may apply for their own discharge.
The trustee then says that the "file is closed"; they are no longer acting as the trustee. This also means that, because the bankrupt was not discharged, the creditors can now pursue the bankrupt.
In this case the bankrupt should contact the trustee to determine what duties must be completed to obtain their discharge.
posted by Questions @ 3:20 PM
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