I am an undischarged bankrupt. Can the trustee take my severance pay?
My union just settle a new contract. The contract expired prior to me filing for bankruptcy.
I am not yet discharged. Part of the new contract is that we can take our severance in a complete payout, put a portion into rrsp’s and take some as a pay out or put all of it in rrsp’s.
I will also be getting a signing bonus and retroactive pay. Is the trustee entitled to all or any of these monies?
I will not address the severance pay portion since if you are not resigning the funds will not become due and the Trustee will have no call on the funds.
The signing bonus and retroactive pay will have to be reported to the trustee and you may have to pay some additional surplus income payments.
Please refer to EXAMPLE # 5 on the Superintendent of Bankruptcy’s website at the following link:
Earl Sands, Licensed Insolvency Trustee