Canada Bankruptcy - Preferred Creditor

Bankruptcy Canada Questions & Answers

Author:		Anonymous
Date:		December 27, 2008
Question:		This question relates to my rights if any as a creditor. I am a preferred creditor for alimony and support. My ex-husband just recently filed for bankruptcy. He will be given an automatic discharge on July 16th, 2009. Could you tell me what a preferred creditor is and am I entitled to arrears support payments? Also what happens going forward? Thank you.
From:		Karen Alger & Associates Inc. - Alberta Bankruptcy Trustee
Date:		December 27, 2008
Answer:		A preferred creditor will receive a distribution from his bankruptcy estate prior to any other creditors. ie. If there are funds paid by the bankrupt to the Trustee, the trustee gets paid and then the preferred creditor gets paid and then the rest of the creditors get a percentage of what's left. Child support payments are to be maintained by the bankrupty after the date of bankruptcy and if they become in arrears all your normal collection procedures are still available. Karen Rideout phone: (403) 296-2973 Alberta Bankruptcy