What happens to money received after a bankruptcy or consumer proposal?
May 2nd, 2016 by Anonymous
If I were to file for bankruptcy, or a consumer proposal, in Quebec, and after a year or two I won a substantial amount of money, what would happen to these funds in a court case? Can I receive it without anyone being able to touch it? The money would be paid to me from a lawyer’s trust account, and I would like to know if there would be a longstanding lien against me after completing either bankruptcy or an accepted consumer proposal…Thank you for taking the time to answer this query.
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May 02, 2016 at 10:28 am, Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said:
When you file an Assignment in Bankruptcy you are signing over everything you own, have a right to or interest in to the trustee, for the general benefit of your creditors. This includes the interest that you have in your lawsuit, notwithstanding that the lawsuit may be settled sometime later. As such, the trustee may take over the conduct of the lawsuit and may decide to settle it.
In the event that you file a proposal, you are required to disclose your assets including the potential realisation from this lawsuit. In that case, the creditors will decide whether they are prepared to accept the proposal.