Amendments to the Bankruptcy and Insolvency Act
Effective September 18, 2009, significant changes were made to the Bankruptcy and Insolvency Act to streamline procedures and to ensure consistency amongst Trustees. One of these changes is in relation to surplus income payments. The legislative changes now require that if your income exceeds a base amount set by the Superintendent of bankruptcy, you will be required to make surplus payments for a set number of 21 months for a first time bankruptcy and 36 months for a second time bankruptcy. The Trustee has no professional discretion in setting the length of time for making surplus payments as under the previous legislation.
Legislative changes also provide additional protection to continue your mortgage or car loan when filing a bankruptcy or proposal.
Please contact one of our Trustees to discuss how the above will affect you and other options available to remedy your financial problems.