by footloose » Mon Mar 21, 2011 08:34:44 PM
The Statement of Income and Expenses is only one document that a Trustee must complete in putting together a package of documents to be submitted to the Superintendent of Bankruptcy to initiate a Consumer Proposal. The expenses that you made reference to should definitely be included in your expenses. I have no idea why the Trustee chose to ignore them. However, having said that, that may be the least of your concerns at this point.
In your initial post, you indicated that bankruptcy was not an option, but you didn't explain why. It has now come to light that you had declared bankruptcy previously in 1997. After discussing your options with a second Trustee, your estimated monthly payments will be $450 a month, up from $300 to $325 a month. Based upon the information that you submitted in your posts, that monthly payment represents an impossibility for you to meet.
When a Trustee submits a Consumer Proposal to your creditors, he/she must furnish as much detail as possible so that a creditor can make an informed decision as to whether to accept the Proposal or to reject it. If the Trustee did not state in the Proposal that you had previously declared bankruptcy and when, and the creditors learned of this fact later, they would apply to the Superintendent of Bankruptcy to have the Proposal annulled ( cancelled ) and the Trustee would in all probability be “disciplined” by the Superintendent of Bankruptcy including suspension of his/her licence to practice as a Trustee.
The fact that you had previously declared bankruptcy and now find yourself again in financial difficulty does not sit well with your creditors. That is why that in a Consumer Proposal, they would be demanding a higher monthly payment than if you had never previously declared bankruptcy and the Trustee knows that all too well as they are continuously dealing with these matters.
That leaves you with two options. Bankruptcy or a lawsuit. Let me examine each one independently.
Because you have been previously bankrupt, I don't have to bore you with all the details, however, there are 2 things that you should be aware of. First, if you declare bankruptcy, that information will remain on your Credit Reports for both Equifax and TransUnion for 14 years from the Date of Discharge. Second, if you do NOT have surplus income, you are ELIGIBLE for a discharge after 24 months in bankruptcy. Application must be made to the Bankruptcy Court. There is no guarantee that you will be discharged in 24 months and there may be conditions attached to the discharge. The discharge is NOT automatic. If you have surplus income, you are ELIGIBLE for a discharge after 36 months in bankruptcy. Same rules apply as stated previously.
If you are currently in collections with RBC, that means that at some time in the past, you had defaulted on your monthly payments and there is a better than average chance that you will default on your future payments. Having said that, RBC will no doubt go on the offensive and attempt to sue you in either Small Claims Court if your debt is 25K or less or in the Superior Court of Justice if your debt exceeds 25K. If the lawsuit is brought in the Superior Court of Justice, you do not have the knowledge , experience or expertise to defend yourself so that means you will have to hire a lawyer to represent you and that costs money. Your defence could include a promise to pay $X per month but RBC may challenge that amount through a payment hearing, and if successful, could make it difficult for you to meet these payments. Should you default on these payments, after 15 days RBC can then apply to the court for a judgment which is usually granted. Unlike the previous Limitations Act in which a judgment was valid for 10 years and renewable for a further 10 years, under the current Limitations Act, 2002 effective January 1, 2004, there is NO limitation period for judgments and court orders. In effect, you could be subject to a judgment for the rest of your life or until the debt is satisfied whichever occurs first. Not a bright outlook but that's how I see it.
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Educating one Consumer at a time