Life Insurance and After Acquired Property

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.

Latest Blog Posts

2025-07-14

Nearly half of Albertans are $200 or less away from financial insolvency each month, more than any other province, amid ongoing economic uncertainty

Lindsay Burchill

MNP Consumer Debt Index

Nearly half of Albertans (47%, +2 pts) report they are $200 or less away from financial insolvency each month — more than those in any other province — according to the latest MNP Consumer Debt Index.

Read More

2025-07-14

Nearly half of Quebecers regret their debt as life plans stall and financial anxieties take hold amid ongoing economic uncertainty

Frederic Lachance

MNP Consumer Debt Index

Nearly two-thirds of Quebecers say they desperately need interest rates to go down (63%, -2 pts), according to the latest MNP Consumer Debt Index.

Read More

2025-07-14

MNP Consumer Debt Index holds steady following two interest rate pauses as Canadians brace for ongoing economic uncertainty

Grant Bazian

MNP Consumer Debt Index

Younger adults and lower-income households are most likely to report stress, stalled life plans, and living paycheque to paycheque.

Read More

Consultation icon