windfalls

December 19th, 2007 by Questions

the labour board has found that i was unjustly dismissed from my job, and i will be receiving a monetary settlement from my former employer. how does this affect my bankruptcy

Questions

One Response to “windfalls”



December 20, 2007 at 9:46 am, A licensed trustee said:

You are required to declare the award to your trustee – it will either be treated as income (subject to the surplus income rules) or “after acquired property” (a windfall).

Based on how your trustee treats the award, you will be required to pay a portio (perhaps 100%) of the money to your trustee for the benefit of your unsecured creditors.

I realize this may sound unfair, but remember, you filed bankruptcy to eliminate your debts. Depending on the size of the award, you may want to speak to your trustee about changing your bankrupty into a proposal – perhaps your creditors will allow you to keep a bigger portion of the award that way.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)