borrowed monies

February 24th, 2009 by Questions

I am currently in bankruptcy and am self-employed. I was injured at work last year and had to hire a subcontractor to do my work so I wouldn`t lose my contract. I was unable to pay him in full. Just before I went bankrupt, I borrowed the money I owed my subcontractor from a family member to pay him out. I am in bankruptcy now and need to pay my family member back. I have earned the money to do this and would like to know if paying my family member back is going to cause me any problems. Thankyou

Posted from: British Columbia


One Response to “borrowed monies”

, A licensed trustee said:

A couple of things – you should have listed this family member on the list of creditors that you gave your trustee before your bankruptcy started. If you didn’t then you have already committed an offence (ie broken a fairly serious rule). You were required to inform your trustee of everyone that you were indebted to – you might want to go and speak to your trustee about this…

Regardless of whether or not this person was put on your list of debts, you cannot make a repayment to them during your bankruptcy without running the risk of being ordered to repay all of your creditors. If you repay this person and the Court finds out that you have the Court may decide that you should repay everyone – it is not worth it.

Once your bankruptcy is over you have the right to repay anyone that you owed – in most cases bankruptcy is only a 9 month procedure, surely this person can wait a few more months to make sure you don’t get into trouble…

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