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Money held in trust

When does the trustee send money to the creditors? I’ve been paying $300 for the past sixteen months. When I asked where the funds were disbursed, I was informed there was none. That $1900 was taken by the trustee for administration costs and remaining $2900 was held in trust. They provided no proof. Is it normal for the creditors to wait over a year for any sort of payment?

Posted from: Newfoundland and Labrador

One Response to “Money held in trust”

A licensed trustee said...

Trustees do not normally distribute any money to creditors until the bankruptcy is complete – you need to ask if the bankruptcy has been discharged and what the truistee may be waiting for in order to complete the file. Once they have whatever is outstanbding it will likely take another 3 months to close the file down and send money to the creditors.

If you have any further questions you should contact the Office of the Superintendent of Bankrutcy – they can ask the trustee involved for an explanation of any delays.