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My mother went bankrupt and has passed away…

My mother went bankrupt in January (I believe) of 2012, and passed away last month. She was making payments of $65/month to the Licensed Insolvency Trustee which were to end in January. I just received an e-mail from the trustee saying that any money that was left in her bank account must “be delivered up to our office for the benefit of her creditors”. Is this true? How can she owe her creditors money when she has gone bankrupt? There wasn’t a lot of money in the account, maybe $1,000. Any advice would be appreciated. Posted from: Ontario

One Response to “My mother went bankrupt and has passed away…”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

There can be a number of reasons why she was required to pay $65.00 per month to the bankruptcy trustee. Without knowing the details of her bankruptcy, was she discharged? Did she receive a Conditional Order from the Court? Or did she have an agreement to pay surplus income with the trustee? In most of these circumstances the residual amount she agreed to pay would be a claim against her estate notwithstanding the bankruptcy, but not all. For example if it was a Conditional Order of discharge from the Court she may remain an undischarged bankrupt but that becomes a moot point.

You will have to talk to the trustee and get an explanation as to why the trustee feels they have a claim against her residual assets.