`Windfall` clause in Proposal
March 1st, 2009 by Questions
I have recently filed a five-year Division 1 proposal, which I am hoping (as I discussed with my trustee) to pay off early by making more money through my self-employment.
I have noticed that the proposal contains a clause concerning windfalls (`including, but not limited to, lottery winnings and inheritances`), such that if I receive a windfall, it is to be added to the dividends that go to the creditors, in addition to my payments. I read this before I signed, and I accepted it because it sounded quite fair in the case of such things as lottery winnings and surprise inheritances.
My question is, could increased earnings through my business be counted as a `windfall`? Could this clause interfere with paying off early due to increased income?
Posted from: Ontario
One Response to “`Windfall` clause in Proposal”
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March 02, 2009 at 10:11 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
You would have to clarify with your trustee, but a windfall normally refers to any unexpected lump sum of money that is not related to your normal employment. So while I don’t anticipate this normal definition will be adjusted, it is important to clarify this directly with your trustee as I have not read the specific clause that was used.