Bankruptcy and Inheritance

February 5th, 2007 by Questions

I may need to declare personal bankruptcy. A consumer proposal is not an option because I do not have a steady income. Right now I have been out of work for 9 months.

I am to receive an inheritance, but I don\’t know when it will be coming. It should be straight forward, but you never know…there is property to be sold. I realize that if I receive the inheritance before or within the bankruptcy period before discharge it will be signed to the trustee to pay my debts…makes sense. But if I declare bankruptcy now and am discharged after 9 months and then receive an inheritance, what happens?


One Response to “Bankruptcy and Inheritance”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

You are correct that complete disclosure is necessary. As a result your trustee will have to be notified of this inheritance, and as long as we know that the money is going to come (regardless if it is during the initial 9 months or after) then the money will be paid to the creditors. It would be different if there is any uncertainty (i.e. the party in question hasn’t passed away), but when you are aware that the moneys will be coming then the monies will be lost.

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