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Bankruptcy Calgary Edmonton Q&A Forum





A bankrupt is protected from their creditors garnishing their wages while they are in bankruptcy. If the trustee closes the file and the bankrupt remains an "undischarged" bankrupt is there any other way that they can be protected from their creditors?



Grant Thornton Limited



Mar 28, 2014



An undischarged bankrupt does not have the benefit of the Stay of Proceedings because the bankrupt has failed to comply with the duties and obligations prescribed by the Bankruptcy & Insolvency and also in some cases Orders issued by the Court. To obtain protection, i.e. reinstate the stay of proceedings, the Trustee must either be reappointed by the Court or the bankrupt can file a Proposal to his/her creditors,however the Proposal will require that the bankrupt comply with any oustanding duties and will be required to pay to the Creditors at least the amounts otherwise required through the bankruptcy process.

Marie Kozlowski
T 403-296-3082


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