Are funds not found during the bankruptcy OK ?
I was discharged from bankruptcy on June 15/2006. This week (6 months later December 19/2006)letter from the company who admisters my employee savings plan and my Group RSP. This letter was in response to a letter from my trustee dated April 27/2006 in which my trustees requested the liquidation of any accounts I might have and to forward the proceeds to my trustee. Can the company that manages my accounts forward this $ to the trustees even though I was discharged from bankruptcy 6 months ago ? My trustee knew all along that these funds were there yet he didnt contact them until 7 months after I had declared bankruptcy. The management company then took 6 months to reply. I have been discharged since June 15 (6 months). Any comments anyone ? Thanks
Your trustee certainly has the right (in fact they are required) to cash out these funds if you owned them when you filed for bankruptcy. If you did, I am certain your trustee told you that they would be seizing the money and so their actions shouldn’t come as a surprise.
You do have the right to question why it has taken so long to collect the money, but it sounds like the management company dragged their feet (and your trustee didn’t push them).
Sorry, but the money was no longer yours as soon as you filed.
Try to remember the debts that you owed and how bad you felt before you filed – this is just part of the cost of clearing all that stuff up.