Income And Contribution Assessment
Despite section 42170, this section does not apply to a registered trustee in relation to the estate of a deceased person in respect of which an order has been made under Part XI of the Act.
The registered trustee must, as soon as possible after all necessary information has been made available, make an assessment of:
the income of the regulated debtor in respect of a contribution assessment period and
the contribution that the regulated debtor is liable to pay.
The registered trustee must:
act fairly and reasonably in determining the time for payment of any contribution that a regulated debtor is liable to pay in respect of a contribution assessment period, calculated in accordance with section 139S of the Act and
if full payment within the contribution assessment period or before discharge would cause hardship to the regulated debtor, consider giving the regulated debtor an extension of the time for payment of contributions liability.
The registered trustee must:
give the regulated debtor a copy of the assessment of income and contributions liability, setting out and explaining the basis on which the amount of any contributions liability has been calculated and
notify the regulated debtor of the effect of section 139ZA of the Act .
In this section:
contribution assessment periodhas the same meaning as in section 139K of the Act.
What Is The Creditor’s Meeting In A Bankruptcy Proceeding
A meeting of creditors is the single hearing all debtors must attend in any bankruptcy proceeding. It is held outside the presence of the judge and usually occurs between twenty and forty days from the date the original petition is filed with the court.
In chapter 7, chapter 12, and chapter 13 cases, the trustee assigned by the court on behalf of the United States Trustee conducts the hearing. In chapter 11 cases where the debtor is in possession and no trustee is assigned, a representative of the United States Trustee`s office conducts the hearing.
The hearing permits the trustee or representative of the United States Trustee`s Office to review the debtor`s petition and schedules with the debtor facetoface. The debtor is required to answer questions under penalty of perjury concerning the debtor`s acts, conduct, property, liabilities, financial condition and any matter that may affect administration of the estate or the debtor`s right to discharge. This information enables the trustee or representative of the United States trustee`s Office to understand the debtor`s circumstances and facilitates efficient administration of the case.
What Does Receivership Mean Summary
I hope that you found this what does receivership mean Brandon Blog helpful in describing the role of a privately appointed receiver especially in opposing the discharge of the bankrupt guarantor of the companys secured debt. Problems will arise when you are cash-starved and in debt. There are several insolvency processes available to a person or company with too much debt. You may not need to file for bankruptcy.
If you are concerned because you or your business are dealing with substantial debt challenges, you need debt help and you assume bankruptcy is your only option, call me.
It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.
The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties with debt relief options as analternative to bankruptcy. We can get you the relief you need and so deserve. Our professional advice will create for you a personalized debt-free plan for you or your company during our no-cost initial consultation.
The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.
Also Check: How Many Bankruptcies Has Donald Trump
Claim An Exemption In The Property
Debtors and non-debtor co-owners must be aware of their rights to claim an exemption in the property. This issue often arises when non-debtor spouses or ex-spouses are brought into a bankruptcy. Under California law, the non-debtor status of Chapter 7 debtors former spouse does not preclude them from claiming a state-law exemption in property of the bankruptcy estate. In re Pass, 553 B.R. 749 . In fact, transfers of property with no equity after an exemption may be excluded from fraudulent transfer laws, though such a transfer should not be done post-petition when that property becomes property of the bankruptcy estate.
Am I Allowed To Have A Bank Account If I Declare Bankruptcy In Canada
If you have more than $999 in your account and want overdraft protection, you must notify your bank that you are bankrupt. In order to prevent creditors from taking money from you, it is recommended that you open a bank account at an institution where you do not owe money. Only use your new bank account and do not use any accounts that were active prior to your bankruptcy.
You May Like: How Many Times Has Trump Filed For Bankrupsy
Responsibilities Of The Bankruptcy Trustee
Whereas the U.S. Trustee’s office has broad-sweeping duties, the bankruptcy trustee is tasked with accomplishing the everyday work needed to push your petition through the process. In both Chapter 7 and Chapter 13 cases, it’s the bankruptcy trustee’s job to:
- review your bankruptcy petition for accuracy
- evaluate property exemptions
- question you under oath at the 341 meeting of creditors.
Trustees have chapter-specific duties, as well. You can expect a Chapter 7 trustee to sell property that you can’t protect with a bankruptcy exemption and distribute the proceeds to creditors. A Chapter 13 trustee will review your proposed repayment plan, and if it’s confirmed by the court, collect your monthly repayment plan payments and send the funds to creditors.
You’ll find out who your bankruptcy trustee will be a few days after you file your bankruptcy papers. Look for a notice from the court. It will give you the trustee’s name, business address, and business phone number. The bankruptcy trustee might be a local bankruptcy attorney or a nonlawyer who is knowledgeable about Chapter 7 or Chapter 13 bankruptcy and the local rules and procedures of your court.
What Happens If Bankruptcy Is Not Discharged
The end goal in personal bankruptcy is to be discharged from it. Not being discharged from bankruptcy puts you in a vulnerable legal and financial situation. Until the discharge has been handled appropriately, all of your finances are essentially at a standstill.
to learn if you can file for bankruptcy online in Canada.
For starters, your ability to take out a loan will be limited. Without a formal bankruptcy discharge on file, you wont be allowed to borrow any more than $1,000 without notifying the lender that you are bankrupt. If you attempt to take out a loan for more than that amount and fail to disclose your bankruptcy to the lender, you would be in violation of the law.
You could also find yourself scrambling and paying to find a new trustee if the one who was originally appointed applies for discharge. If you dont complete the process and fail to get discharged, you may find yourself having to hire a new trustee, which will cost you more money and waste a lot of time.
Once your trustee is discharged, your creditors may come back at you for the money you owe them on. Not only will they demand the original loan amount, they will likely charge you interest on monies owed. They may even choose to take you to court to get what is rightfully theirs.
Read this to discover some ways of rebuilding your credit after a bankruptcy.
Recommended Reading: How To File Bankruptcy In Wisconsin
What Happens To My Regular Income If I Declare Bankruptcy In Canada
Your wages are not affected by your bankruptcy, but part of your duties during bankruptcy includes providing your trustee with your household monthly earnings and expenditures. Additionally, if your income changes or you gain or lose a dependent, you must inform your trustee.
You may be required to make monthly payments to your trustee. These are called surplus income payments. Your trustee determines whether you have to make surplus income payments based on your average earnings over the bankruptcy and the number of people in your household.
Watch the video below to learn more about surplus income payments.
Video transcript: Meet Stephanie, the mother of a young son, James, who is just about to enter Primary School. Recently, Stephanie has overextended her credit and, despite her best efforts, is unable to pay her bills. Realizing that she needed to speak to an expert, Stephanie found a Licensed Insolvency Trustee located in her area and has gone to meet with her. After speaking to the trustee, Stephanie has determined bankruptcy was the most appropriate option for her.
They Act On Behalf Of The Bankruptcy Estate
The bankruptcy estate is a fictional entity that is created as soon as a bankruptcy petition is filed with the court. It holds all of the debtorâs property. In addition, the trustee, as the representative of the bankruptcy estate, can take certain actions to recover property that should be in the estate, but isnât.
They sell nonexempt property.
They sell property of the bankruptcy estate that is not protected by an exemption. If the nonexempt asset is money, like a tax refund or cash on hand, they collect this money. The funds are used to pay unsecured creditors in order of priority and provide a detailed report about everything to the court and the U.S. Trusteeâs office.
They recover certain debt payments.
If the debtorâs property or income was used to pay an unsecured creditor in the 90 days before the bankruptcy case is filed with the court, the trustee can get this payment back. The point is to make sure that all creditors get a fair share that one one is preferred. This is not limited to voluntary payments, but includes money that was taken by a garnishment. If the creditor who received the preferential transfer is a family member or friend, the bankruptcy trustee can recover everything they received in the 12 months before the filing date.
They recover property the debtor gave away.
In most cases, they donât actually do any of these things
Read Also: Can I File Bankruptcy Without My Spouse Knowing
Red Flags The Trustee Looks For At The Meeting Of Creditors
The following are common red flags the trustee will ask about at the meeting of creditors.
Undisclosed or Undervalued Property
In both Chapter 7 and Chapter 13 bankruptcy, the value of property mattersprimarily because of the rule that entitles unsecured creditors to an amount equal to your nonexempt property. Here is how this works.
A Chapter 7 trustee sells nonexempt property to pay unsecured creditors. By contrast, the Chapter 13 trustee doesn’t sell property. Filers can keep every they ownbut that doesn’t mean they get a free ride. A filer must pay unsecured creditors at least as much as they’d receive in Chapter 7 through the repayment plan. This is known as the “best interest of creditors test.”
Not only are the creditors’ rights at stake, but the trustee gets paid according to the amount dispersed to creditors. The more assets, the more the trustee benefits financially. So, you can expect the trustee to look into your property holdings thoroughly and ask about any red flags.
For instance, the trustee might disagree with the value you’ve placed on an item or suspect that you sold an asset for less than it was worth and ask about it. Orand this does happenan ex-spouse or ex-business partner might claim that you’re hiding especially valuable property. Expect the trustee to follow that tip.
Unverified Income
Excessive Expenses
Recent Creditor Payments
Why Was My Chapter 13 Bankruptcy Case Dismissed
Other reasons why a Chapter 13 bankruptcy case may be dismissed are: As you can see, the reasons for a dismissed Chapter 13 usually involve the debtor failing to do something the debtor is required to do under the bankruptcy rules. However, sometimes, a dismissed Chapter 13 case is due to something beyond the debtors control.
Don’t Miss: Fizzics Net Worth
What Does Receivership Mean: Receivership Is For Secured Claims
What does receivership mean? A receivership is an enforcement proceeding that helps secured creditors recover secured debts on debtor defaultson loan payments from troubled companies. There are two types of receivers and receiverships: Privately-appointed receivers and court-appointed receivers.
As you can tell from the title of this Brandon Blog, I am not going to be writing about receiverships. You can take a look at my April 14, 2021, Brandon Blog titled WHAT IS A RECEIVERSHIP? OUR COMPLETE GUIDE TO RECEIVERSHIP SOLUTIONS to read all about what receiverships are.
What does receivership mean? It is a remedy for secured creditors.
I want to go through two more concepts quickly, and then I will get to what I really want to talk to you about today.
What Does Receivership Mean: The Bankruptcy Of The Guarantor
We administered the consumer bankruptcy. There were some assets to realize upon which we did. One realization required court approval as we were selling seat licenses and the right to purchase tickets for the Toronto Maple Leafs to a related party. The bankrupt persons largest single consumer creditor was Canada Revenue Agency for unpaid income tax. The company in receivership was also a creditor as the president owed the company money. The secured creditor of the company was also an unsecured creditor of his in his personal bankruptcy for the personal guarantee on the shortfall.
The known creditors each filed their respective proof of claim in his bankruptcy, including the company by its privately-appointed receiver. We believed that the company by its receiver was a creditor for the amount of the owing to the company. The proof of claim they filed was for a much larger amount. As Trustee, we neither admitted nor disallowed any proofs of claim filed in this bankruptcy estate. The Trustee would have to take a cold hard look at the receivers proof of claim at some future date it is determined that a dividend will be paid to the creditors in this bankruptcy estate, which is highly unlikely.
Read Also: How Many Bankruptcies Has Donald Trump
How Does A Bankruptcy Trustee Get Compensated In Chapter 7 And 11
Many bankruptcy creditors, debtors, interested parties and their attorneys in Chapter 7 bankruptcies fail to consider the incentives of the Bankruptcy Code as it relates to the compensation of the Chapter 7 Trustee. Understanding these incentives will help litigants navigate the path of negotiating with a Chapter 7 trustee, which can be particularly risky since the Trustee can hire their own attorney, whose fees may make settlement even more difficult.
Congress further defined compensation for trustees by limiting the amount a court may award a trustee for his or her services under § 330 to a percentage based upon the amount of moneys disbursed or turned over in a specific case. 11 U.S.C. § 326 . In addition to compensation for services, under § 330, trustees in a Chapter 7 case receive $45. 11 U.S.C. § 330 . These provisions clearly set forth a statutory scheme in asset cases, whereby Chapter 7 trustees will be compensated for their services according to § 330 and § 326 and will receive an additional $45 pursuant to § 330. In no-asset cases, Chapter 7 trustees will merely receive the $45. In re U.S. Trustee, 32 F.3d 1370, 13731374 . Some trustees may refer to this small fee in no-asset cases as a loss leader. In other words, the real money is made in the assets cases.
How Are Bankruptcy Trustees Paid
Chapter 7 trustees get a flat fee of $60 for every single Chapter 7 bankruptcy case assigned to them. In no-asset cases, thatâs all they get. In an asset case, on the other hand, the trustee also receives a percentage of the total amount paid to unsecured creditors. Itâs a little bit like a commission system, but itâs on a sliding scale. They get 25% of the first $5,000 they disburse. The percentage goes down as the amount paid to creditors goes up.
Chapter 13 bankruptcy trustees are also paid a percentage which is determined by the monthly payments the trusteeâs office is processing each month. Most Chapter 13 bankruptcy trustees have office staff and this percentage is used to pay for their office expenses. There is a limit to how much a Chapter 13 trustee can receive as a salary from these funds.
Read Also: How Many Bankruptcies Has Donald Trump Filed
What Does Receivership Mean: The Receiver Opposes A Bankruptcy Discharge
Only one unsecured creditor opposed the bankrupts discharge. That was the receiver, or more correctly, the company in receivership by its privately-appointed receiver. The Trustee had not opposed. The lender, as an unsecured creditor, did not oppose either along with the other consumer creditors.
As I mentioned, in April 2021, the discharge hearing was held before the Master sitting as Registrar in Bankruptcy Court. The court raised a novel issue. Does the receiver have the standing to oppose the bankrupts discharge? The court allowed the hearing to be completed and allowed the parties to file further submissions, subsequent to the hearing, on this issue. Submissions were received from us, the Trustee and from the Receiver in mid-May, 2021. The bankrupt took no position on the issue.
what does receivership mean
