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Inheritance during and after bankruptcy

I filed bankruptcy in 2010 and am partially through the 9 month period. My remaining parent passed away two months after I filed. My only sibling is executor and all decedent`s assets are left jointly to us. Must any estate`s assets be split before my discharge or is that the sole discretion of the executor? If any disbursement is made after my discharge, will any proceeds which might come to me be subject to submission to the trustee?

Posted from: Alberta

One Response to “Inheritance during and after bankruptcy”

A licensed trustee said...

When the executor decides to distribute the inheritance makes no difference. The way the law works, you are required to inform your trustee of the fact that you have been named in the Will and that your parent has died. Anything that you are entitled to, whenever it gets paid, is now payable to your trustee for the benefit of your creditors.

You need to contact the trustee handling your file and inform them of these events – if they find out on their own about the Will it may land you in a lot of trouble (as in the Coprt may refuse to discharge you from bankruptcy, or if you’ve already been discharged the Court may revoke it and apply some very stiff penalties).

Call your trustee.