What happens with missed payments during bankruptcy?
When someone files for personal bankruptcy, payments and fees are required. You are required to make all payments during your bankruptcy in accordance with the agreed upon payment schedule with your Licensed Insolvency Trustee. Also you are required to report on your income, household expenses and any change in your working/living environment.
Length of Bankruptcy
The length of your bankruptcy will depend on your total household income. If you happen to earn enough money, then you will need to make surplus income payments. The standard bankruptcy period is 9 months for a first time bankrupt when there are no surplus income payment requirements. When surplus income payments are required, the bankruptcy period is increased to 21 months (for first time bankruptcies).
If you find that you are in a situation where you will not be able to make a regular scheduled payment. We advise that you contact your Licensed Insolvency Trustee ASAP so you can inform them of your particular situation. Preparations for missed payments can be made to help you get back on track with your payment schedule. With a bankruptcy, you must have your payments fully paid at the end of your bankruptcy period in order to be eligible for discharge from your bankruptcy.