injury settlement received after

March 6th, 2008 by Questions

We filed for bankruptcy in Jan 2004 and after 9 months were given a conditional order of dicharge pending an outcome from WSIB. The order states a discharge if determined there are no loss wages from during the time of bankrupsy. My husbands claim is for loss wages from aug 2001 till Mar 2004, therefore only two months would constitute time during bankruptcy. We have asked trustee on advice from lawyer that anything prior to that he wouldn’t be entitled to. The trustee has since replied stating that any wage loss up to time of bankrupsy would be considered an asset at time of filing therefore it would be payable into the estate, my problem with this is had my husband been given WSIB from time of injury it would of been a bi-weekly pay that we would have lived on and therefore we would not have had this as assett at time of filing and we wouldn’t have filed bankrupsy. We want to move on with our lives and it seems like this is contridicting the order. My lawyers firm claims a conflict of interest with this trustee as a partner represents them and cannot advice further. We need desperalte advice on this, its bad enough were waiting 7 years plus for a decision in our appeal but now our trustee keeps finding reasons not to release us. Am I not correct is interpreting this…please help


One Response to “injury settlement received after”

, A licensed trustee said:

Unfortunately, I agree with your trustee (and I think you will find the Court interprets the law this same way).

Using your logic, if the WSIB had made the payments when they were supposed to, they wouldn’t have been part of the bankruptcy, so why are they now?

Well, presumably if you’d received the money (when you were supposed to) you might not have incurred so much debt – if you want the debt that was incurred prior to filing for bankruptcy eliminated then any retro-actove income you may become entitled to for that same period is lost too.

Sorry, it is how the system balances itself out….

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)