Lump sum spousal support and creditors?
I went bankrupt in 2013 and was discharged in 2013. I separated from a common law partner shortly afterwards. I was paid a lump sum amount in lieu of monthly spousal support payments.
Under what circumstances would a creditor be entitled to a bankrupt’s lump sum spousal support?
Would my creditors be entitled to any of my spousal support payment?
Since you were separated and received a lump sum payment in lieu of spousal support after your discharge from bankruptcy, the creditors have no right to any of the spousal support payment and you are able to keep the entire amount free and clear.
Earl Sands, Bankruptcy Canada Licensed Insolvency Trustee