louise

October 18th, 2012 by Questions

I went bankrupt 4 months ago and since then my husband died.I received a death benefit from him around 60000 and my debts totaled 25000.Can I cancel my bankruptcy and payoff creditors myself?
Thanks

Posted from: Ontario

Questions

One Response to “louise”



, A licensed trustee said:

You’ve got a couple of options – you should speak to your trustee.

One option would be to file a consumer proposal, offer to repay the debt in full from the insurance. Once the proposal is accepted your bankurptcy will be annulled (as if you never filed). You may use your current rustee or a different one if your trustee doesn’t like this plan…

A second option would be to hire a lawyer to hold the death benefit. Have the lawyer pay off the debts in full and then apply to the Court to have your bankruptcy annulled. This method obviously has the added cost of the lawyer, but then there won’t be a bankruptcy or proposal on your financila history.

Third option – do nothing. Your trustee will seize the death benefit and pay off ytour creditors in full. Whatever funds are left over will be returned to you. If yoir trustee is “nice” they’ll apply to the Court to have your bankruptcy annulled (since your creditors were paid in full). If your trustee isn’t “nice” you can always make the same application to Court yourself to have the bankruptcy annulled (or hire lawyer to do it)…

Start by speaking to your trustee.

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