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”



, 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.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)