Bankruptcy non-compliance
Question: I would like to know what happens when a person goes through the filing of a bankruptcy but then doesn’t follow through with the rules?
What would happen in the case of non-compliance and dis-charge?
My boyfriend went through a bankruptcy six years ago and then had no further contact with his trustee. When we inquired with them six years later as to what was required for dis-charge they sent a nasty letter saying he needed to pay $1600. just to get them to pull his file from storage, review it, and advise him?
Would he be at risk of having to file all over again lengthening the term to 13 years under a bankruptcy umbrella? Would he risk assets gained in the six years since filing?
Answer: If a bankrupt person does not complete their duties during the bankruptcy period, the trustee goes to court, and is then required to close the file. The person remains an undischarged bankrupt. In order to obtain their discharge, they must return to court and have the bankruptcy judge grant their discharge.
If, for example, the bankrupt person was supposed to pay $1,600 to complete their bankruptcy but didn’t, the court may require them to pay the $1,600 in order to get their discharge. That may be what the trustee was referring to in the letter they sent your boyfriend.
We suggest you discuss this further with the trustee to fully understand what is required to obtain the discharge. If you disagree with the trustee’s approach, you can hire a bankruptcy lawyer to represent you at a bankruptcy discharge hearing.