Fighting bankruptcy extension
My husband and I had very little debt but what forced us into bankruptcy was when RBC “called the loan” for my husbands business even though sales were increasing and all bills were paid. We now know banks have the right to do whatever they want to their clients.
We have just completed 9 months of bankruptcy. Living in the Yukon we had to pay the trustee for our vehicle that we already own as well as my kids RESP. All of our payments have been made “in full,” but they want to extend our bankruptcy for a total of 21 months. We just want to move on with our lives. If we are in it for 12 months longer, that is another year before we can start building our credit back up, saving money for a down payment on a house, saving money for a possible future emergency, etc. It is another year that we cannot afford to contribute to our children’s education and our RRSP’s. We live on a budget and manage our money perfectly. I will never get a loan for anything again except hopefully a mortgage and if I have to use our one credit card, it will only be if I can pay the charge immediately just to build up our credit. We will never be in bankruptcy again.
They claim that we have excess income but what gets me is that the allowable monthly expenses are considerably low compared to the city we live. It is an average across the country, but it is senseless to give us the same expenses as a small town in Saskatchewan where rent is very low. I used to rent a 2 bedroom home for $400 per month. Where we live now our 3 bedroom home is quadruple that. We live in the north and everything costs much more here. The demand for rental units sends the prices skyrocketing. Groceries are quite a bit more because of the cost to transport it up here. Right now, the gas prices in Vancouver are $135.9 but here they are $147.9 for a liter.
We have requested mediation and even though the trustee told us about it, they seem to think it is a waste of time. What can we do to persuade them to discharge us after 9 months?
I appreciate any help you can give me. Thanks.
The trustee has to abide by the laws in effect. So, if the excess income indicates you have to be in bankruptcy for another 12 months you must comply. You can try mediation but I don’t think you will get satisfaction from that process.