The length of time in bankruptcy depends on your income and if you have filed for bankruptcy before.
To best explain this, let me tell you about 4 people who recently filed for bankruptcy. They are all single and have $30,000 in credit card debt.
Debbie works part time and earns $1,800 per month. Since she is below the surplus income guidelines, she will be in bankruptcy for 9 months.
John also earns $1,800 per month. However, he previously filed bankruptcy in 1997. Because he has filed for bankruptcy before, he will be in bankruptcy for 24 months.
Henry brings home $2,500. He is a first time bankrupt. Since he has surplus income, his bankruptcy will last 21 months.
Cindy brings home $2,200. She filed bankruptcy in 2001 and as a result her bankruptcy will last 36 months.
Is it as simple as that?
No.
If you don’t do your duties, your discharged is opposed by your Trustee. That means you have to go to court to get your discharge.
Your creditors can also object to you getting out of bankruptcy. This also means you have to go to court to get your discharge.
If your bankruptcy was caused by gambling, you will have to go to court to get discharged. You will also have to go to court if you have high tax debts.
You have to report your income to the trustee each month that you are in bankruptcy. You may have had low income to start, but if your income increases, you may find your length of time in bankruptcy increases.
As you can see, the length of time in bankruptcy can vary and can be confusing. It’s best to meet with me in my Windsor office to determine how long your bankruptcy may last.
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