Bankruptcy & FRO

January 27th, 2014 by Questions

If a spouse is the preferred creditor in a bankruptcy, do the trustees send the money to the FRO office and does this only happen after a court date?

Posted from: Ontario

Questions

One Response to “Bankruptcy & FRO”



January 27, 2014 at 9:38 pm, A licensed trustee said:

The trustee will send the money as directed on the proof of claim for the preferred debt. If FRO submits the claim the funds will be sent to FRO – if the spouse submits the claim then the spouse will receive the money. Preferred claims may be paid at any time the bankrupt estate has sufficient funds to do so – in most cases, trustees will wait until the end of the file just to be certain no other claims come in that rank higher.

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