Inheritance after discharge
My wife was recently discharged from bankruptcy by her trustee. Prior to filing she informed the Licensed Insolvency Trustee that there may be an inheritance from her mothers estate but it was very unlikely due to the amount of debt in her mothers estate (this was put in writing at the beginning of the bankuptcy).
During the bankruptcy, her mothers house was sold by her mothers trustee. We had no knowledge of any excess money in her mother’s estate until after my wifes discharge.
Her mother’s estate is still not settled (Final taxes with CCRA have to be filed) but it looks like there could be a some inheritance to my wife.
Is my wife entitled to this inheritance or could her bankuptcy discharge be denied by the courts?
This depends on what your wife’s trustee has done. Normally, if there is any expectation of an inheritance this would be written into the bankruptcy discharge order and when the property is made available it would be forwarded to the attention of your trustee. If ther was no such term in the discharge and it comes to the attention of the trustee that there is value to this inheritance that should have been made available to your wifes creditors than her trustee may be required to have the discharge annulled and the proceeds to be then be paid into the estate.