if a debtor is paid for by an insurance company
June 13th, 2013 by Questions
i’m in a consumer proposal. I had taken insurance on one of my debt and now the insurance company is paying out that loan in a lump sum.
Since my trustee is already paying them does this money come to me or go to my debtor
Posted from: Ontario
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June 13, 2013 at 4:31 am, A licensed trustee said:
It is unlikely there is any scenario in which the funds would be paid directly to you. I suspect the insurance will pay out the debt, thereby reducing the total amount that you owe to your creditors. Unless you ask your trustee to file an amendment to alter your original terms, this won’t have any affect on your proposal payments. It just means the rest of your creditors will receive more money.
Go and speak to your trustee about this….