Bankruptcy & FRO
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
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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
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.