Inheritance
My brother is going through Bankruptcy and has been discharged by the court in Alberta. During the process our mother passed on and we sold her house. The proceeds of which were split and my brother had to by law give the trustee the funds he recieved. The proceeds were well above what he owed. we are being told that the process to release the funds takes several months even after the court distcharged him. How long should the release process take? I feel something is not right and that any extra funds over and above what he owed should have been paid back by now. he was released several months ago. please let me know and thanks.
Posted from: Alberta
It literally depends on how many other issues remain outstanding in your brother’s file. The most common hold-ups are due to tax returns, or rather waiting for the Notice of Assessment for all the tax returns that have been filed. normally, no funds are returned to a bankrupt until the Final Statement of Receipts and Disbursements, as well as payments to creditors, are sent out by the trustee.
Your best course of action may be to contact the trustee and ask them what exactly remains outstanding and when they expect the file to be completed. If you don’t like the sound of their answer contact the Office of the Superintendent of Bankruptcy and ask them to look into it for you.
A couple of other thoughts come to mind. If your brother’s debts were repaid in full he may want to apply to the Court to have his bankruptcy annulled – why leave it on his record if the creditors were repaid?
My second question is whether or not your brother’s trustee suggested filing a proposal to creditors when he became aware of the inheritance – this would have annulled the bankruptcy and would have wrapped things up much sooner for your brother. If no money has been sent to the creditors yet your brother may still want to look into this option…