October 2nd, 2010 by Questions
What happens if i declare bankruptcy and then recieve a life insurance policy that i am beneficiary for.
Posted from: Manitoba
October 03, 2010 at 4:40 am, A licensed trustee said:
The proceeds will be treated as a “windfall” and seized by your trustee for the benefit of your unsecured creditors. If it is a substantial sum, you may wan to ask your trustee if it is possible to file a consumer proposal to have your bankruptcy annulled – you will have to sign over most, if not all, of the life insurance, but you won’t be bankrptcvy anymore.
Speak to your trustee about your options.
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