I have lost confidence in the trustee that I have been using. They have been evasive in answering my questions and when they do answer it is vague and not straightforward. I am getting the impression that they are trying to get more money than I had expected to pay. Am I allowed to switch trustees or can you recommend how I can deal with this? I declared bankruptcy for a second time due to the loss of my employment and subsequent loss of my house. The total amount was $48,000 which was all from my house being sold for less than what I owed. I did not have any other debts.
I was single when I declared but shortly after that, I reconciled with my boyfriend. The debt on the house was not his. I asked my trustee why my boyfriend is expected to declare his income when it wasn’t his debt. They said it’s because his income allows me to live better and therefore pay more back. This has created a huge stress and disagreement between my boyfriend and myself. Now I have been researching more and see that he doesn’t have to disclose his income! I work part-time and don’t expect to walk off without paying some of my debt but I don’t feel it’s fair for my boyfriend to be involved.
Now I’m 17 months into this and we have been providing the trustee with our monthly income and he is telling us that we should be paying over $1000 per month instead of the $180 that I have been all along.
I have been in once every month to provide my paperwork and payment and it’s only due to my constant questioning that I even met with the owner of the business. I feel confused and distrustful of him now because when we went in to get our questions answered he used a lot of double talk and wasn’t even aware of what I was paying and that it was my second bankruptcy. They were my trustee for the first one 20 years ago. Please help!
It is not allowed for anyone to switch trustees.
You are correct. Your boy friend did not have to divulge his income to the trustee. You could pay more if his income is not divulged. You can check this out by using our bankruptcy predictor and running the two scenarios.
You also have the option of reporting the trustee to the Office of the Superintendent of Bankruptcy (OSB), the government body that is in charge of trustees:
Complaints against Licensed Insolvency Trustees:
If you have concerns about an LIT which cannot be resolved, you may file a complaint with the OSB. Learn about the type of complaints handled by the OSB and OSB’s service standards.