September 10th, 2012 by Questions
What happens if I inherit money during bankruptcy? Do I just hand it all over to be distributed to my creditors?
Posted from: British Columbia
September 10, 2012 at 8:36 pm, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Yes, if file for bankruptcy and inherit money it is all paid directly to your trustee. The bankruptcy legislation then requires that it be used to pay your trustee’s administration costs, your creditors in full (plus 5% interest) a small levy that goes to the Office of the Superintendent of Bankruptcy ( a division of the federal government). Then if there is anything left it will be turned back over to you.
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