2010-10-01
The Bankruptcy and Insolvency Act contains the term "After-Acquired Property". Generally, any property a bankrupt receives while they are bankrupt becomes the property of the Trustee and this would include inheritances or life insurance proceeds. However, there is at least one court case I am aware of that says that at least a portion of life insurance proceeds received should remain with the Bankrupt. This is not an easy question to answer and we would want to discuss the facts of this situation in much more detail than can be done in this forum. I would strongly suggest that you make an appointment to review your situation (we do not charge for initial consultations) with our nearest office. Perhaps the solution might be to make a proposal to your creditors instead of filing bankruptcy, which might result in all, or part, of the life insurance proceeds remaining with you.
2025-04-25
Debt collection can be a daunting experience for many Canadians. Navigating the process alongside MNP’s team of experts can help you better understand how it will impact your credit score and gain the knowledge needed to maintain your financial health well into the future.
2025-04-24
Filing a Consumer Proposal can feel overwhelming, but it’s not the end of your financial journey.
2025-04-16
Alternatives to Bankruptcy Bankruptcy
How can you reduce food waste? These strategies can help benefit both the environment and your bank account.
