May 25th, 2011 by Questions
what happens if you went bankrupt and are still on it for 21 months, your first time, then a family member dies and leaves you money
Posted from: Ontario
May 25, 2011 at 5:59 am, A licensed trustee said:
The money that you’ve been left in the will is payable to your trustee for the benefit of your unsecured creditors (in other words you lose it). If it is enough to repay your debts in full you may apply to the Court to have the bankruptcy annulled. If it is not enough to repay the debts in full then the money is simply lost.
Usually when this question is asked, the second question is “what happens if I don’t tell my trustee about the will?” If you don’t notify your trustee about the inheritance and the trustee finds out from some other source you wiull be required to appear in Court and explain what you’ve done (or rather didn’t do). In most cases the Cort wil order you to repay an amoutn GREATER than the inheritance as a penalty – in some cases the Court simpy refuses to allow your bankruptcy (whihc means you are back to owing all of the money you owed before you filed).
Call your trustee and discuss all of this with them – not disclosing the inheritance is almost always discovered and you may end up in an awful lot of trouble…
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