Question: If someone is bankrupt in Ontario and falls heir to a some of money, is it applied to the the debt? My opinion is that is should be but there are those who disagree.
Answer: Yes, if you become eligible to receive an inheritance while you are an undischarged bankrupt in Ontario, or anywhere in Canada, the trustee will seize the money and distribute it to your creditors. If you inherit more than is required to repay your creditors in full, once the creditors are paid in full the rest of the money will be returned to you.