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Inheritance during a Consumer Proposal

My father recently passed away and I`ve received a modest inheritance of $6000 to be used for school and to help my mother if she needs it. If I file a consumer proposal will I need to forfeit it the same way I would if I filed a bankruptcy? Also if there is a chance I may inherit other assets is a consumer proposal better than a bankruptcy?

Posted from: Ontario

One Response to “Inheritance during a Consumer Proposal”

A licensed trustee said...

You will not be required to surrender the $6,000 unless that is a specific term in your proposal (ie you offer to do so). That being said, you will have to inform your trustee about the money and it will have an impact on how much you have to offer your creditors in your proposal.

If you think there may be further amounts that you may inherit and you don’t want to simply hand those items over to your trustee then a proposal makes more sense than bankruptcy. Frankly, you should discuss all of this in detail with a trustee in your area and then decide – don’t simply rely on my quick answer as I don’t know enough about your situation to give you informed advice.