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What About My Inheritance?

I recently declared bankruptcy and last week received news that my aunt passed away. While we aren’t sure the exact provisions of the estate yet it it likely I will be coming into some significant money from it. Obviously most of this will go to pay my debts but what will happen if there is extra left over? Does my trustee have any responsibility to try and protect this extra for me or negotiate down my debts to help me keep more? Who do I go to to look out for my interests in this?

Posted from: Ontario

One Response to “What About My Inheritance?”

A licensed trustee said...

You should contact your trustee to discuss your options. If there are going to be sufficient funds to repay your debts in full then you might want to (1) file a consumer proposal to annul the bankruptcy and allow you to keep some of the money, or (2) apply to the Court to have your bankruptcy annulled and deal with your creditors yourself.

If you remain in bankruptcy the money, whatever amount it is, will be paid to your trustee, they will deal with your creditors and their fees, then return any residual to you.