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After Discharge Obligations

If you have been discharged from bankruptcy for almost two years and someone close to you passes away and leaves you a substantial amount of money, can those who were not paid out their full value during the bankruptcy process come after you and put in a claim against the moneys that you will be receiving?

Posted from: Ontario

One Response to “After Discharge Obligations”

A licensed trustee said...

If the person died while you were still in bankruptcy then you should have notified your trustee at that time so they could deal with it, no matter when the money actually gets paid. So, if they died while you were still in bankruptcy the money belongs to your creditors, not you.

If the person died after you were discharged from bankruptcy then you are under no obligation to inform your trustee – you may deal with any money you receive as you see fit. (In other words, you creditors have no right to the money).