October 6th, 2011 by Questions
If I defaulted on the payments on CP and went bankrupt, does the payments made already count in bankruptcy? and how?
Posted from: Ontario
October 06, 2011 at 6:55 am, A licensed trustee said:
No, they do not. The payments you made into your proposal “belong” to your creditors – there have been cases in the Ontario Courts which require the proposal trustee to distribute the funds received to your proposal creditors. It gets a bit strange if you haven’t paid enough to cover the basic costs of filing – the funds then end up paying your trustee, but it is how the law works. Sorry.
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