Personal Bankruptcy Forum


Author:   Anonymous
Date:   October 13, 2002
Question:  

In March of 1999 I sold my business. The terms of the sale have payments of $2,000 a month being paid to me until March of 2009 ( the payments are treated as earned income in the year they are received). My current business venture is suffering and I am considering bankruptcy. Will this income stream from my previous business be viewed as an asset available to my creditors or will it be viewed as income?

 


From:
 

Ann Clarke, Collins Barrow Limited
Date:   October 15, 2002
Answer:   The Trustee would have to review the agreement and terms of sale to determine whether the proceeds of sale are income or an asset. You could also seek advice from a lawyer specializing in bankruptcy regarding this issue.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca




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