I assume that the sale of the house and the receipt of the $60,000 was made 8 months prior to the assignment in bankruptcy. If so, was the Trustee aware of this event at the time of the assignment in bankruptcy? If yes, did the Trustee discuss this matter with you and ask for an accounting of the disbursement of these funds? If the Trustee was not aware of this situation at the time of the assignment in bankruptcy, when did the Trustee learn of it?

The Trustee's concern is that 8 months prior to an assignment in bankruptcy, you had sufficient funds in which to pay off your creditors either in part or in total and I assume that you did not do this. Therefore, the Trustee has some very serious concerns that this may be a FRAUDULENT assignment in bankruptcy and has requested a court hearing before a Registrar or Judge in the Bankruptcy Court for a determination if this is a fraudulent assignment and a further direction as to what further conditions the court will impose.

There is no time limit as to when this court hearing will be held. It all depends on how busy the court is.

After the first 9 months of your bankruptcy, you are not required to report your income and expenses unless your Trustee requires it. You indicated in a previous post that your Trustee has made no further demands on you for reporting purposes.

When you are summoned to the bankruptcy court, your Trustee will present evidence of the facts of this matter to the Registrar or Judge. The Registrar or Judge will heavily cross-examine you as to what happened to the $60,000 and why you did not pay your creditors either in part or in total and will request an accounting of how these funds were disbursed. If the sale of this house and the receipt of $60,000 was not reported to the Trustee at the time of the assignment of bankruptcy, the Registrar or Judge may deem that the assignment in bankruptcy is a fraud and decide to keep you in bankruptcy for a longer period and/or make additional payments to the Trustee.

In preparation for your court appearance, I strongly suggest that you make every effort to account for the disbursement of these funds including any documentation, if possible. Be prepared for some tough questions as to why you did what you did. Your Trustee will be required to follow any conditions imposed by the Court.

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Educating one Consumer at a time

I basically have made ~$5000 over 8 months which I used to support myself and I had to borrow some money from friends to get by and fulfill the $200/month obligation. The trustee opposed the automatic discharge because of a sale of house 8 months earlier which left me with $60000, unfortunatelly due to the fact that I was not employed and perosnall issues that money was gone by the time of bancruptcy.
Is there a time period in which hearing must be held or can I be waiting 5 years for it?
If I work after the 9 months do I still have to report my income or does the reporting obligation exists during the first 9 months?
What documentation do I have to take with me when the hearing happens?
Anything else that comes to your mind which could be helpful in my case?
Any steps at this point which I could take to improve my chances of positive outcome at this time?
Thanks a lot for your help.

Normally, an automatic discharge will be issued after 9 months from the date of your bankruptcy under the following conditions:

1. You have completed 2 counselling sessions.

2. Your creditors, the Superintendent of Bankruptcy and the Trustee are not opposing your discharge.

3. You have not had surplus income based on the Superintendent's Standards during your bankruptcy.

Your bankruptcy will last for more than 9 months if the bankruptcy court orders your bankruptcy extended.

There are several conditions that could extend your bankruptcy. However, the discharge is usually granted if you are earning only enough income to keep yourself and your dependents reasonably provided for and if you have received the mandatory 2 counselling sessions.

When a creditor, the Superintendent of Bankruptcy or the Trustee oppose a bankrupt's discharge, the matter goes to mediation or to the Bankruptcy Court and is heard before a Registrar or a Judge.

In Ontario, in order to make an Assignment in Bankruptcy, you must be able to make a minimum payment of $200 per month. You indicated in your post that during your bankruptcy, you were unemployed, therefore, you were either in receipt of Employment Insurance for at least part of the bankruptcy period or you had income from some other source or you had access to funds in order to meet your $200 per month payment.

You indicated that you have received the mandatory 2 counselling sessions and that you had no surplus income. Hence, your discharge is being opposed by your Trustee. I am not fully aware of the details of your bankruptcy but obviously, your Trustee is not comfortable with this situation Hence, your Trustee has made an application to the Bankruptcy Court for a hearing before the Registrar or a Judge. The Trustee will present evidence and information before the court and request the Registrar or Judge to determine any further conditions deemed necessary before the Court will grant the discharge.

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Educating one Consumer at a time

By surplus income you mean income over the limit? I was not working at that time so I only paid $200/month. It is my first bankruptcy.

The Ontario Limitations Act, 2002 has absolutely nothing to do with a bankruptcy. The sole purpose of this Act is that it establishes the time period under which a creditor can sue a debtor in a court of law.

Now, in regards to your bankruptcy.

1. Was this your first bankruptcy filing?

2. Did you have "surplus income" to which you were making a payment of at least $100 a month?

Once I have answers, I can explain to you what is happening.

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Educating one Consumer at a time

I am in Ontario. I have filed for bancruptcy 18 months ago but my trustee opposed the automatic discharge so I guess I am waiting for my date in court. I have paid the trusee for 9 months and I have attended the consuelling sessions. I wonder what will happen next? How long can they keep me hanging like that? Is there maximum time by which some decision have to be made or discharge has to be granted? I have read about 2 year statuory limitation period in Ontario but I am not sure what that means and if it would apply to my case. I have called trustee few weeks ago and he just told me that I have to wait for court, he did not mention any other obligations that I have to fulfill. I am just very nervous not knowing what will happen next thats why I am posting here hoping someone can shine some light on my situtation.