equalization

October 14th, 2015 by Questions

I am currently in bankruptcy, as is my ex-spouse. We currently do not have a separation agreement. I’m wondering how equalisation is impacted by bankruptcy? It appears I will be discharged in 9 months and him in 21 months. We were allowed to keep our small home (I’m residing in the home and would like to own the home) and our RRSPs. So, now I’m looking for equalisation related to the RRSP’s and the house- does the bankruptcy play a role in the equalisation process?

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One Response to “equalization”


October 14, 2015 at 8:18 pm, Doug Stuive, CA | Trustee | CIRP said:

A bankruptcy may play a role in an equalization process depending on when the process commences. When you file for bankruptcy, the trustee steps into your shoes when it comes to dealing with your assets. If you had commenced an equalization claim prior to filing for bankruptcy the trustee would step into the process and determine if it is beneficial for the estate to pursue the equalization claim. The trustee cannot force equalization of assets in separation when you file a bankruptcy.

If funds are received from your spouse related to equalization during the bankruptcy period then your trustee would have an interest in those funds for the benefit of your creditors. If you commence an equalization claim after both you and your spouse are discharged, the trustee would have no interest in the equalization claim.

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