I met with a debtor in Windsor last week who had been unable to make all of his payments in his bankruptcy and wanted to know what would happen next.
When debtor’s meet with me at the start of their bankruptcy, we review various paperwork including their duties and responsibilities. One of these duties is making payments based on their income. If the payments are not made, the debtor is no longer eligible to receive an automatic discharge and the file is sent to bankruptcy court.
The court wants to see that we have worked out a payment plan with the debtor and we attempt to do so prior to the court hearing. At court, a court order is issued detailing the payment plan. It is very important that the debtor comply with the court order. We don’t have the power to override the court order, so if a debtor doesn’t do what the court ordered, we are required to close the file. When a bankruptcy file is closed it means that the debtor remains in bankruptcy, but he no longer has the protection. Creditors can then pursue him, take him to court and garnishee wages. If you are having problems making your payments, it important to speak with us so we can try to work out a reasonable payment plan. You can call us at 310-PLAN or email me.
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