Investing while bankrupt

January 4th, 2009 by Questions

I am 3 months into my bankruptcy. A friend has asked if I`d like to invest $200.00 a month into their growing business, which should take off in about a year. Is this something I can do whilst bankrupt or is it not allowed? If I cut back on a lot of costs I should be able to manage the monthly investment.

Posted from: Ontario


One Response to “Investing while bankrupt”

, A licensed trustee said:

There are no restrictions/prohibitions against investing while you remain an undischarged bankrupt, BUT if for some reason you end up in Court at the end of your bankruptcy (say you failed to attend your counseling sessions, for example) and the Court sees that you have been able to invest $200 a month during your bankruptcy the Court might very well order you to pay $200 a month for a period of time towards your debts…

In other words, I would think twice before doing this while you remain an undischarged bankrupt. There is nothing wrong with it, but it may complicate things if anything else goes wrong.

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