In middle of bankruptcy my husband passed away.

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cat lady

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In middle of bankruptcy my husband passed away.
« on: June 23, 2014, 07:34:40 PM »
There is a large life insurance policy which the trusty is seizing the amount is double what's needed to pay off the debts so I asked if we could cancel and pay the debts through either a proposal or just pay   They tell me the judge won't allow it. It's to expensive but no dollar amount and they won't tell me when I get the balance of the money. I do not know what to do now help

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NotATrust-E

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Re: In middle of bankruptcy my husband passed away.
« Reply #1 on: June 28, 2014, 08:32:23 AM »
Generally, the courts will not annul (cancel) a bankruptcy in the situation that you are describing. You are eligible to file a proposal while bankrupt, however, one of the rules of proposals is that it must offer a better return than a bankruptcy. I'm not sure how things work in the situation that you are describing. Filing a proposal itself wouldn't be too expensive.
The trustee may be concerned about when the payment will happen; it doesn't make sense to file a proposal when you don't actually have the money yet.

You can talk to another trustee to get their opinion, but they may not want to get involved because it would seem like they are poaching someone elses' client.

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cat lady

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Re: In middle of bankruptcy my husband passed away.
« Reply #2 on: June 28, 2014, 09:42:26 PM »
I read the act and erased them to cancel. They now tell me they can but they must disperse the money. They tell me that this will free up the balance of the money earlier.  Ticks me off that I had to read the act and quote passages and numbers to get them to move.

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NotATrust-E

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Re: In middle of bankruptcy my husband passed away.
« Reply #3 on: June 29, 2014, 12:01:41 PM »
This is really interesting - maybe it's only certain Ontario courts that have stopped anulling bankruptcies for this reason. Please let us know what happens.

 

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