June 26th, 2012 by Questions
What are the laws for 2nd time bankruptcy when it comes to receiving an inheritance while in bankruptcy
Posted from: Ontario
June 26, 2012 at 1:39 pm, A licensed trustee said:
The laws regarding inheritances are the same, regardless of how many times you have filed for bankruptcy: the inheritance vests with your trustee for the benefit of your unsecured creditors (in other words – you lose it).
Depending on the amount of the inheritance, you may want to discuss with your trustee whether or not you should file a proposal. If your creditors agree to your offer your bankruptcy will be cancelled. You will still lose most, if not all, of your inheritance, but if you can have the bankruptcy remved from your record why wouldn’t you…
Of course if the inheritance is large enough to pay off your debts in full then you should apply to the Court to have your bankruptcy cancelled too.
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