income in bankruptcy

December 16th, 2008 by Questions

I was recently fired from my job and have been forced into bankruptcy. My employers did not give me any length of service compensation. I should have $2500 coming to me once employment standards makes their decision. What will happen to that money? Will I get to keep it due to it technically being from before my bankruptcy or will it be treated as income at the time of recieving it?

Posted from: British Columbia


One Response to “income in bankruptcy”

, A licensed trustee said:

Actually, you want this money to be treated as income, not as something you are entitled to before the bankruptcy started. If your trustee treats it as something you were entitled to before you filed then your trustee is required to “take the entire amount”. If it is treated as income then only the surplus rules will apply (ie you’ll get to keep a portion of the money).

I think you should call your trustee and speak to them about this – better to work it out before the money shows up. That way there won’t be any surprises…

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