Money in bank account

December 8th, 2009 by Questions

I am unclear what my rights are with regards to asset disposal (specifically money in a bank account) after a notice of intention to file a Div I proposal but before the meeting of creditors. I am a high wage earner with significant CRA debt and with business expenses. Are there any rules or regulations pertaining to how i can spend my money prior to the meeting of creditors?

Posted from: British Columbia

Questions

One Response to “Money in bank account”



December 09, 2009 at 7:48 am, A licensed trustee said:

Once you have filed a Notice of Intention you are required to disclose any/all material transactions that you complete. “Material” is not defined anywhere, but it is generally considerd “an amount that influence or change a creditor’s perception of your situation”.

So, if you have to spend a couple of dollars to live no one is likely to batt an eye – if you suddenly make $5,000 in cash “disappear” it will take some explaining…

If I were you, I’d call and speak to my trustee – you are required to disclose to them yoru activity anyway and they can decide whether or not what you are doing is material and needs to passed along to your creditors.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)