Second bankruptcy – income tax return

February 12th, 2009 by Questions

Hi, I have not yet been discharged from a bankruptcy as, unfortunately, I am a second time bankrupt (both marriage break downs). My discharge was delayed 6 months so I will have my discharge in May 2009. My question is…my trustee file my pre and post bankruptcy income tax for the year I declared. Even though I am not officially discharged because it was delayed, am I entitled to keep any refund I am eligible for this year or does it also go to the trustee for the creditors?
I called revenue canada for an access code to file via tele-file and they said that I couldn`t because I am still listed as bankrupt. Any help you can give me would be greatly appreciated.

Posted from: Ontario

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One Response to “Second bankruptcy – income tax return”


February 12, 2009 at 9:54 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Normally you only loose your tax return for the year of bankruptcy and any previous year. This is measured by the date you file, not the date you are discharged. So any refund from a subsequent year will likely go to you.

As for not being able to net file, this is normal as CRA normally requires the first year after bankruptcy for the tax return to be paper filed.

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