Discharged from bankruptcy and came into inheritance

April 11th, 2016 by Questions

I’ve been discharged from my bankruptcy as of 2009 during which my father passed away and there was potential inheritance. However, the estate finalized in October of 2015. I am aware that my creditors are entitled to any ‘property’ I obtain from the inheritance. Due to the length of period interest has been applied to all debts as well as administrative fees. My student loans were listed in the bankruptcy but wasn’t discharged. My trustee is trying to apply approximately seven years of interest to my student loans as well. Meanwhile, I have been paying my student loans due to 178(1) indicating I’m still responsible. I have been trying to tell him that you can’t apply interest to a debt that is already accruing interest. He hasn’t been compliant and has threatened to apply more interest at the end of February. I have emailed him three times since February 17 but was out of the office til the 23rd. He hasn’t replied at all. What can I do without incurring the cost of hiring a lawyer?

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One Response to “Discharged from bankruptcy and came into inheritance”


April 11, 2016 at 7:19 am, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:

If there is sufficient funds in an estate the trustee is responsible for paying a dividend to the proven creditors. This will include any claims from Canada Student Loans. The dividend, if there are sufficient funds, will include interest accrued from the date of bankruptcy at 5% per year. When Canada Student Loans gets the dividend from the bankruptcy it will undoubtedly be applied against your account, thereby reducing the amount of student loan outstanding. If this is in fact the case, then the trustee is correct and it is probably not to your detriment because it will reduce the outstanding amount on your student loan.

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